Medical device company Alphatec said it has ended its agreement to acquire EOS Imaging due to the ongoing impact of COVID-19.
"This has been a difficult, disappointing decision," said Alphatec Chairman and CEO Pat Miles. "Both companies have worked so hard and so cooperatively over many months to bring this transaction together. On behalf of the entire ATEC family, I want to personally thank EOS for its commitment and hospitality throughout this process."
Alphatec announced the tender offer agreement to purchase EOS imaging for up to $88 million in addition to $33.9 million of debt retirement on Feb. 26. But the business and healthcare landscape has changed considerably since then due to the coronavirus pandemic. After undertaking an analysis of the market effects of COVID-19, Alphatec said it concluded that a material adverse effect, as defined in the terms of agreement, had occurred, and the company decided to terminate its offer.
Alphatec sent a letter dated April 24 to EOS to terminate the offer. Alphatec and Perceptive Credit Holdings agreed to terminate the commitment letter for up to $160 million in secured debt financing as well, which would have allowed the company to complete the transaction. Alpahtec's current credit facilities remain in place.
Even though the acquisition was terminated, Mr. Miles hinted that the companies may continue to work together in strategic collaboration.
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