SAN DIEGO, Dec. 12, 2017 /PRNewswire/ -- NuVasive, Inc.
(NASDAQ: NUVA), the leader in spine technology innovation, focused
on transforming spine surgery with minimally disruptive,
procedurally-integrated solutions, and SafePassage™, a
privately-held provider of intraoperative neurophysiological
monitoring (IONM) services, announced today that they have entered
into a definitive agreement under which NuVasive will acquire
SafePassage. Terms of the deal were not disclosed.
With the addition of SafePassage, NuVasive Clinical Services™
(NCS) solidifies its leadership position as the largest provider of
outsourced IONM services with more than 550 neurophysiologists and
oversight physicians in the U.S., allowing for the delivery of
services to over 1,000 customers and 3,000 surgeons. This joining
of forces strengthens the Company's intraoperative neuromonitoring
business line, which was formed in July
2016 when the Company acquired Biotronic NeuroNetwork and
combined its service offerings with that of the Company's
subsidiary, Impulse Monitoring, Inc. Since then, NCS has further
scaled the business, achieving operational efficiencies and driving
better clinical outcomes. Following the acquisition of SafePassage,
NCS is expected to support greater than 100,000 IONM cases annually
in the U.S.
SafePassage is also complementary to the current NCS
geographical footprint with limited overlap between existing
healthcare accounts. The acquisition helps further accelerate the
services business growth and enables deeper reach in key strategic
markets while adding significant new coverage, particularly in the
densely populated New York region
and along the East Coast where NuVasive has traditionally had a
strong spine procedural-selling presence.
"The acquisition of SafePassage advances the NuVasive services
strategy and expands our ability to transform how spine procedures
are approached, measured and valued from a clinical and economic
perspective," said Skip Kiil,
executive vice president, Global Commercial of NuVasive. "As the
only spine company in the world with dedicated neuromonitoring
services operating at this elevated scale, and now with increased
case coverage, we are uniquely positioned to deliver greater value
across our procedurally-integrated portfolio.
"Just as important, the highly trained and well-respected
SafePassage leadership and clinicians have earned the industry
reputation of being among the best in the business, and we're
excited to partner with them to provide consistent and quality care
to hundreds of surgeons and thousands of patients each year,"
continued Kiil.
"For more than a decade, the team at SafePassage has been
dedicated to serving patients and surgeons with premium quality
intraoperative neurophysiological monitoring services to improve
patient outcomes and reduce economic risk for hospitals and
surgeons," said Dan Siegel, chief
executive officer of SafePassage. "We are extremely passionate
about our vision to eradicate preventable healthcare injury, the
third leading cause of death in the
United States, and I look forward to joining forces with
NuVasive to further our mission worldwide."
Financial
NuVasive expects the transaction to
be accretive to the Company's non-GAAP earnings per share (EPS) in
2018 and beyond. NuVasive also expects the transaction to support
its longer-term targets for revenue growth and expansion of its
non-GAAP operating and EBITDA margins. Additionally, the
transaction is expected to meet the Company's goals for return on
invested capital for tuck-in acquisitions in three years,
consistent with the Company's previously stated acquisition
criteria.
The transaction is expected to close in January 2018, subject to customary closing
conditions.
About SafePassage
Founded in 2007 by surgeons,
SafePassage's 135 clinical specialists and support staff service
approximately 12,600 cases annually. Privately held and based in
New York City, SafePassage
provides IONM and EEG services to surgeons and healthcare
facilities across the eastern U.S. The Company is Joint Commission
accredited since 2014, with recent renewal in 2017.
About NuVasive
NuVasive, Inc. (NASDAQ:
NUVA) is the leader in spine technology innovation, focused on
transforming spine surgery and beyond with minimally disruptive,
procedurally-integrated solutions designed to deliver reproducible
and clinically-proven surgical outcomes. The Company's portfolio
includes access instruments, implantable hardware, biologics,
software systems for surgical planning, navigation and imaging
solutions, magnetically adjustable implant systems for spine and
orthopedics, and intraoperative monitoring service offerings. With
$962 million in revenues (2016),
NuVasive has an approximate 2,300 person workforce in more than 40
countries serving surgeons, hospitals and patients. For more
information, please visit www.nuvasive.com.
Forward-Looking Statements
NuVasive cautions
you that statements included in this news release that are not a
description of historical facts are forward-looking statements that
involve risks, uncertainties, assumptions and other factors which,
if they do not materialize or prove correct, could cause NuVasive's
results to differ materially from historical results or those
expressed or implied by such forward-looking statements.
Forward-looking statements include, but are not limited to,
statements about the timing of the anticipated acquisition, the
potential benefits and synergies of the anticipated acquisition,
including the expected impact on future financial and operating
results, and post-acquisition plans and intentions. The
forward-looking statements contained herein are based on the
current expectations and assumptions of NuVasive and not on
historical facts. The following important factors, among others,
could cause actual results to differ materially from those set
forth in the forward-looking statements: the satisfaction of
conditions to closing the agreement, including the risk that any
required conditions are not satisfied, are delayed or are subject
to unanticipated conditions that could adversely affect the
combined company or the expected benefits of the acquisition; the
loss of key employees; the risk that the businesses will not be
integrated successfully; unexpected variations in market growth and
demand for the combined company's products and technologies; and
the risk that benefits and synergies from the acquisition may not
be fully realized or may take longer to realize than expected.
Additional risks and uncertainties that may affect future results
are described in NuVasive's news releases and periodic filings with
the Securities and Exchange Commission. NuVasive's public filings
with the Securities and Exchange Commission are available at
www.sec.gov. NuVasive assumes no obligation to update any
forward-looking statement to reflect events or circumstances
arising after the date on which it was made.
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SOURCE NuVasive, Inc.