Medical technology company SeaSpine Holdings has agreed to acquire Toronto-based company 7D Surgical in a deal valued at around $110m.
Under the deal, 7D Surgical shareholders will receive an aggregate of 4,289,848 shares of SeaSpine stock, equivalent to $82.5m. The firm will also receive an aggregate of $27.5m in cash.
Upon completion of the transaction, 7D Surgical shareholders will retain around 13% of issued and outstanding SeaSpine shares.
7D Surgical has developed and commercicalised advanced machine-vision-based registration algorithms suitable for applications in the spine and cranial surgeries.
In February last year, SeaSpine signed a strategic alliance agreement to supply 7D Surgical’s advanced navigational system, which is developed using the company’s machine-vision and image-guided surgery platform.
The 7D system enables to minimise radiation exposure by eliminating intra-operative computed tomography (CT) and fluoroscopy for purposes of registration.
The system also holds the potential to complete the entire patient registration process within 30 seconds compared to 30 minutes with traditional systems.
SeaSpine president and CEO Keith Valentine said: “This combination of our innovative cultures will allow us to expand and stretch our clinical value by fully encompassing the patient experience from the onset of surgical planning through the end of treatment and recovery.
“We believe that participation in the patient’s complete continuum of care, coupled with an industry leading safety profile for the surgeon, the surgical support team, and the patient, will accelerate our market-share taking strategy.”
Subject to receipt of all regulatory, court, shareholder and other approvals, the deal is expected to be completed in the second quarter of 2021.
SeaSpine is engaged in the designing, development and commecialisation of surgical solutions to treat spinal disorders. Seeking Alpha