Wright Medical Group N.V. announced it has entered into a definitive agreement to acquire Cartiva Inc. The move will further accelerate growth opportunities in Wright Medical’s global extremities business and add a differentiated technology that received premarket approval for a high-volume foot and ankle procedure to its portfolio.
“We are delighted to have found an excellent strategic buyer in Wright, a company that shares our commitment to technological leadership and that is a leader in foot and ankle with a demonstrated track record of commercializing breakthrough technologies,” Timothy Patrick, president and CEO of Cartiva, said in a company press release. “We believe that Wright, with its 300-plus direct foot and ankle sales organization in the U.S. and its large international organization, as well as its expertise in medical education and product development, is the ideal partner to realize the full potential of our [Synthetic Cartilage Implant] SCI technology. We look forward to an exciting future as part of Wright Medical.”
According to the release, Wright Medical will acquire 100% of Cartiva’s equity on a fully diluted basis for a total price of $435 million in cash. The full-year 2018 revenues for Cartiva are expected to be approximately $35 million, representing approximately 50% growth during 2017, according to the release, with gross margins and adjusted earnings before interest, tax, depreciation and amortization margins accretive to Wright Medical.
“We are delighted to add Cartiva’s technology, including its Synthetic Cartilage Implant, the first and only PMA product for the treatment of great toe osteoarthritis, to our market-leading lower extremities portfolio,” Robert Palmisano, president and CEO of Wright Medical, said in the release. “Supported by compelling clinical performance and the only product of its kind backed by level 1 clinical evidence, Cartiva is experiencing rapid commercial adoption and is well positioned for future growth as it addresses large markets with significant unmet needs. We believe this technology is a perfect fit for our lower extremities business and adds a differentiated product that addresses a common condition that is treated by most foot and ankle surgeons and has strong patient demand.”