Exactech announced the exercise of its option and execution of a merger agreement to acquire Altiva in December, 2007 based on a valuation of $25 million. Exactech’s final payment of $6.7 million was funded through a combination of $5.1 million from its credit line and through the issuance of 75,000 shares of Exactech common stock.
Altiva is expected to break even in terms of operating profit in the first half of 2008. Exactech expects the transaction to be neutral to earnings in 2008 and accretive in 2009.
Bill Petty, chairman and CEO of Exactech, said: “Exactech’s size and reputation, coupled with Altiva’s innovative product development programs, will result in an exciting collaboration further advancing treatment of spinal disorders.”