GAINESVILLE, Fla. (AP) — Orthopedic device maker Exactech Inc. said Monday it plans to buy spinal products company Altiva Corp. for $25 million to expand its presence in that market.
Exactech said the purchase price is based on Exactech's sales multiple and Altiva's trailing 12 months revenue.
Exactech's final payment of $7 million will consist of cash and Exactech common stock and is expected to be funded from its current financing facilities.
Altiva's operating profit is expected to break-even in the first half of 2008. Exactech forecasts the transaction to be neutral to 2008 earnings and to add to 2009 profits.
As a wholly owned subsidiary of Exactech, Altiva will continue to operate from its Charlotte, N.C., headquarters and will maintain separate sales, marketing, engineering and operational functions.
Gainesville, Fla.-based Exactech expects to close the transaction during the first quarter of 2008, when the company said it will update its 2008 revenue and earnings guidance.
Exactech develops and markets orthopedic implant devices, related surgical instruments and biologic materials and services to hospitals and physicians.
Shares of Exactech fell 44 cents to $19.05 in morning trade.
