This morning Baxter announced plans to acquire ApaTech for up to $330 million, with $240 million in cash up front (a 4x revenue multiple) and additional milestone payments of up to $90 million. The transaction is expected to close in 1Q:10.
Baxter says that ApaTech's ActiFuse, a silicated calcium phosphate bone graft substitute, will "[enhance] Baxter's position in the rapidly-growing orthobiologics space." The company adds that ApaTech's portfolio is "highly complementary" to their biosurgery line, which includes obiologic products such as TISSEEL and FLOSEAL. Baxter is also developing products in conjunction with Kuros based on TISSEEL and Kuros' biologics and associated fibrin-binding technology.
The ApaTech acquisition puts Baxter in direct competition with Orthovita, which offers its own synthetic bone graft substitutes and hemostatic agents. At mid-day today, Orthovita's stock was up 1% while Baxter was trading flat.
