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Wright Medical acquires Solana Surgical and enters into agreement to acquire OrthoPro

US-based Wright Medical has acquired Solana Surgical, a premier extremity orthopedic products company, and entered into a definitive agreement to acquire OrthoPro, a medical device company.

Pursuant to the terms of the agreement with Solana Surgical, Wright Medical has acquired 100% of Solana Surgical’s outstanding equity on a fully diluted basis for total consideration, net of acquired cash, of $90m, consisting of approximately $47.6m in cash and approximately $42.4m of Wright common stock.

Pursuant to the terms of the agreement with OrthoPro, Wright Medical will acquire 100% of OrthoPro’s outstanding equity on a fully diluted basis at a total price of up to $36m in cash as follows: $32.5m paid at closing and up to an additional $3.5m in cash contingent upon achievement of certain revenue-based milestones.

The transaction with OrthoPro is anticipated to close in February 2014.

According to Wright Medical, the transactions with Solana Surgical and OrthoPro add complementary extremity product portfolios to further accelerate growth opportunities in the company’s global extremities business.

Wright Medical president and CEO Robert Palmisano noted the acquisitions of Solana Surgical and OrthoPro are excellent fits for its extremities business, enabling it to add a base of fast-growing extremity revenue that it can effectively grow on a go-forward basis.

"Both of these transactions meet our criteria of being accretive to revenue growth and adjusted EBITDA. In addition, products from both companies will complement our existing foot and ankle portfolio and include several specialized products that expand our extremities product offering.

"Both companies have a reputation for leading innovation, and we anticipate that their products will help expand Wright’s position as the definitive technology leader in the foot and ankle market," Palmisano added.