Orthofix to acquire Spinal Kinetics.

Orthofix International, a global medical device company has entered into a definitive agreement to acquire Spinal Kinetics, a developer and manufacturer of artificial cervical and lumbar discs. Terms of the agreement include $45m in cash closing consideration plus up to $60m in contingent milestone payments related to US Food and Drug Administration approval of the M6-C cervical disc and the achievement of trailing twelve-month sales targets of $30m and $50m. Orthofix expects the acquisition to not only add revenue in 2018, but also increase its organic revenue growth rate in 2019 and beyond. The company also expects the deal to be slightly accretive to the Company's non-GAAP diluted earnings per share and adjusted EBITDA within 12 months of PMA approval in the US and further accretive thereafter. "The Spinal Kinetics M6 artificial discs will further strengthen Orthofix's product portfolio by filling a strategic gap in our Spine Fixation product line. This technology is a significant advancement in mimicking the natural motion of the spine, which we believe will be very beneficial to patients and well received by our surgeon customers," Brad Mason, Orthofix President and Chief Executive Officer.