Medtronic to Acquire Osteotech for $123M
BY LAUREN UZDIENSKI, AUGUST 17, 2010
Medtronic and Osteotech have signed a definitive agreement under which Medtronic will acquire Osteotech in an all-cash transaction valued at approximately $123 million, or $6.50 per share. This represents a 65% premium over yesterday's close of $3.94 and around a 1.3x multiple on trailing 12-month revenues.
The transaction will augment Medtronic's biologics offering, which is currently focused largely on spine and Infuse. 60% of Osteotech's sales are derived from their DBM, and the company's portfolio also includes a line of traditional allograft as well as MagniFuse, a bone graft, and Plexur, a biocomposite of cortical fibers and a resorbable scaffold. Osteotech is also awaiting FDA clearance for its BioGenesis Dural Regeneration Matrix, which is intended for dura repair.
