Private equity firm HealthpointCapital has agreed to purchase a majority stake in US-based medical device firm, CrossRoads Extremity Systems, for an undisclosed sum.
Based in Memphis of Tennessee, CrossRoads Extremity Systems is involved in the development and commercialization of advanced technologies for the orthopedic extremity sector.
CrossRoads CEO and co-founder Vernon Hartdegen said: “HealthpointCapital is an ideal partner for us given their expertise and focus in the musculoskeletal space.
“Our partnership strengthens our mission to be the leading innovator in the extremity foot & ankle space.”
Established in 2014, CrossRoads mainly focuses on the designing of foot and ankle implant systems and services.
The company’s Active Stabilization technology is claimed to be the only technology on the market, which can simultaneously provide enhanced stability with continuous compression and optimized conditions for bone healing in fusion procedures.
CrossRoads’ technology can be used in a range of procedure-specific and sterile-packed implants and instrumentation systems for both lower and upper extremity indications.
The company produces EcoSMART instrument service, which offers customers with gamma sterilized and reusable instruments for every surgical case and post-surgery recovery and processing of those instruments.
EcoSMART helps minimize the inefficiencies of traditional non-sterile instrument trays and reduces the waste associated with typical disposable instruments.
Prior to the merger, Memphis-based investment firm MB Venture Partners was the lead institutional investor in CrossRoads.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo acted as legal advisor to HealthpointCapital for the transaction, while Waller, Lansden, Dortch, & Davis served as legal advisor to CrossRoads.
HealthpointCapital president and managing director Mike Mogul said: “CrossRoads’ unique product platform, particularly its Active Stabilization technology and EcoSMART Service, made them an attractive investment in the extremity sector, which continues to be one of the most rapidly growing segments of the musculoskeletal market.
“With our deep understanding of this space, CrossRoads’ exclusive technology made them a logical addition to our portfolio of rapidly growing companies.”
HealthpointCapital, which was established in 2002, is a major private equity firm that exclusively focuses on the musculoskeletal sector.