Jennifer Whitney03.10.08
Wright Medical Group Inc., an orthopedic medical device company, said it signed an agreement to acquire Inbone Technologies. Wright will make an initial cash payment of $24 million, guaranteed future payments of $3.7 million and potential additional cash payments depending on Inbone's performance. The acquisition, pending approval by Inbone shareholders, will close by the end of first quarter or early second quarter.
Inbone is a manufacturer of orthopedic devices, including the company's innovative devices INBONE Total Ankle System and the INBONE Intra-osseous Fusion Rod and Plate System.
The Arlington, Tennessee-based Wright Medical stated that the transaction, excluding acquisition-related costs, is expected to be $0.03 per share dilutive to its adjusted earnings for 2008 and accretive the earnings in 2009 and thereafter.
The advanced INBONE Total Ankle allows surgeons align and match patient anatomy precisely through a modular in-situ assembly process. The INBONE Intra-osseous Fusion Rod and Plate System combines bones in the foot by placing the device completely inside the targeted bony structures. The device allows fast patient recovery without the long-term problems associated with external plate implants.
Wright's President Gary Henley commented, "The INBONE acquisition represents a key milestone in our effort to become the leading supplier of foot and ankle surgical products. The addition of Inbone's next-generation total ankle will no doubt provide significant leverage to our product portfolio and add fuel to support and expand our focused foot and ankle sales force."
SOURCE: Tradingmarkets.com