Globus Medical has signed an agreement to acquire Alphatec Holdings' international operations and distribution channels for $80m.
Alphatec Holdings is the parent company of spinal fusion technologies provider Alphatec Spine.
Globus Medical has also agreed to extend a 5-year senior secured credit facility of about $30m to Alphatec to support its working capital requirements.
Under the deal, Globus will buy Alphatec's international distribution operations and agreements, including its subsidiaries in Japan and Brazil.
The deal also includes the acquisition of sales operations in the UK and Italy.
In addition, the firms have signed a supply agreement, under which Alphatec will supply its products to Globus for around five years.
Alphatec intends to use the capital from the deal to pay around $69m of existing debt and debt-related costs.
Subject to the satisfaction of the applicable closing conditions, the deal is expected to complete by the end of this October.
Alphatec Spine president and CEO Jim Corbett said: "This transaction will provide Alphatec with a stronger balance sheet, better capital structure and improved cash resources.
“This enhanced liquidity will enable the company to support the continued expansion in the U.S. of our Arsenal degenerative system, Arsenal deformity system, Battalion universal interbody system and the launches of our new Battalion lateral system and XYcor expandable spinal spacer system, both of which we expect to launch later this year.”
Alphatec Spine is engaged in the development, manufacturing and marketing of spinal fusion technology products and solutions to treat spinal disorders associated with disease and degeneration, congenital deformities and trauma.
Based in Audubon of Pennsylvania, Globus Medical produces implants for the treatment of patients with musculoskeletal disorders.
Image: Globus Medical to acquire international operations and distribution channels of Alphatec Holdings. Photo: courtesy of scottchan / FreeDigitalPhotos.net.