The Federal Trade Commission requested additional information and documentary material in from Wright Medical Group in connection with the company’s plan to merge with Tornier.
“We will continue to work cooperatively with the FTC to resolve this as quickly as possible,” said President and CEO Robert Palmisano. “Whatever the final resolution, we do not expect it to have a material impact on the strategic rationale or economics of the proposed merger, and we remain firmly committed to the transaction.”
Here are five things to know:
1. This is the second request Wright Medical has received from the FTC in connection with the proposed merger. The company received the request on Jan. 28, which extends the waiting period until 30 days after both parties have substantially complied with the second request.
2. The wait period can also be extended voluntarily by both parties or terminated sooner by the FTC.
3. The product lines identified in the second request are lower extremity products and Tornier indicated that its lower extremity product lines identified in the second request accounted for global revenue around $21 million in the period ending Sept. 30, 2014. This is less than the $15 million revenue threshold identified in the merger agreement.
4. Wright Medical still believes they could close the transaction in the second quarter of 2015, regardless of the second request resolution. The company doesn’t believe the economics and strategic rationale of the transaction will be affected by the request.
5. The transaction still needs approval by both Wright Medical and Tornier shareholders.