Spine and orthopedics company Orthofix has entered into a definitive, all-stock merger of equals agreement with spinal tech company SeaSpine.
The agreement was unanimously approved by the board of directors for both companies and gives SeaSpine holders 0.4163 shares of Orthofix stock for each share of SeaSpine stock.
Orthofix shareholders will hold 56.5 percent of the company, and SeaSpine holders will hold 43.5 percent.
With products distributed in 68 countries world-wide, approximately 1,600 employees and a global research and development and manufacturing footprint, the new company is expected to have revenues of approximately $693 million as of the 12 months ended September 30, 2022.
The companies will combine all of their technologies into one portfolio.
Members of both companies will also combine to form a nine-person board of directors, with Jon Serbousek serving as executive chairman of the board and Keith Valentine serving as president and CEO and member of the board.
The merger is expected to close in the first quarter of 2023 pending shareholder and regulatory approval.
"This transaction brings together two complementary organizations to create an industry leader with the immediate financial strength to self-fund investments that deliver both growth and better patient outcomes," Keith Valentine, SeaSpine's president and CEO, said in an Oct. 11 press release. "We are excited about the value we can create for the combined company’s shareholders, the new opportunities opened for employees and our ability to now provide surgeons and hospital partners a complete procedural solution using cutting-edge technology at every level."