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news.Exactech has reported that it intends to exercise its 2003 investment agreement option to acquire the stock and assets of Altiva, a North Carolina-based spinal products company.
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The pre-determined $25 million purchase valuation of Altiva is based on Exactech’s sales multiple and Altiva’s trailing 12 months revenue. Exactech’s final payment of $7 million will consist of a combination of cash and Exactech common stock and is expected to be funded from its current financing facilities. Exactech expects the transaction to be neutral to earnings in 2008 and accretive in 2009.
As a wholly owned subsidiary of Exactech, Altiva will continue to operate from its Charlotte, North Carolina, headquarters and will maintain separate sales, marketing, engineering and operational functions. Exactech expects to close the transaction during the first quarter of 2008 at which time Exactech will update its 2008 revenue and earnings guidance.
Bill Petty, chairman and CEO of Exactech, said: “We are pleased that Exactech’s first acquisition includes Altiva’s experienced spinal management team, and brings together employees of two companies with similar cultures, a strong focus on customer service and a commitment to improving patient outcomes.”