Diversified technology firm Colfax has agreed to acquire US-based medical technologies provider DJO Global from private equity funds managed by Blackstone for $3.15bn in cash.
Based in Vista of California, DJO Global offers orthopedic devices, software and services that address the continuum of patient care from injury prevention to rehabilitation.
DJO Global president and CEO Brady Shirley said: “Colfax has the financial strength, experience, and proven business system to support our operational performance and growth.
“Importantly, they are committed to our mission to get and keep people moving, and we are confident that the Colfax team’s operating expertise across a broad array of businesses makes them the ideal partner to help us build on our momentum, drive new levels of innovation, and continue to deliver outstanding service to our customers.”
DJO’s products are used by orthopedic surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers and other healthcare professionals.
The firm’s medical devices and related accessories will also be used by athletes and patients for injury prevention and at-home physical therapy treatment.
DJO offers products such as rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management and physical therapy products.
The surgical division of DJO provides various reconstructive joint products for the hip, knee and shoulder. It markets the products under brands such as Aircast, Chattanooga, CMF, Compex, DonJoy, ProCare, DJO Surgical, Dr. Comfort and Exos.
With around 5,000 employees across 18 locations, the company reported revenue of around $1.2bn for the 12-month period ending September 2018.
Subject to customary closing conditions, the deal is expected to complete in the first quarter of 2019.
Colfax president and CEO Matt Trerotola said: “The acquisition of DJO is a compelling next step in the strategic evolution of Colfax that creates a new growth platform in the high-margin orthopedic solutions market.
“As a clear market leader in bracing and rehabilitation systems – with a track record of innovative new products, globally recognized brands, and a diverse product portfolio – DJO is well-positioned to benefit from secular trends driven by changing demographics and increased preventive healthcare.”