ArthroCare Announces Acquisition of ENTrigue Surgical, Inc.
ArthroCare Corp. (NASDAQ: ARTC), a leader in developing state-of-the-art, minimally invasive surgical products, today announced that it has completed the acquisition of ENTrigue Surgical, Inc., a privately held Delaware corporation (“ENTrigue”), in an all cash transaction.
Pursuant to a Merger Agreement, ArthroCare paid $45 million in cash, subject to customary working capital adjustments and an amount held in escrow for indemnification. In addition, the previous shareholders of ENTrigue will have the right to receive contingent consideration on each anniversary of the closing for each of the next five years based on the increase in net sales during each twelve-month period of ENTrigue products multiplied by an agreed upon factor.
More than 30 million people in the United States are estimated to suffer from sinusitis, which is a condition characterized by an inflammation and infection of the nasal sinuses. Approximately 500,000 sinusitis patients are treated surgically in the United States each year. ENTrigue designs and develops innovative implants, disposables and instruments for endoscopic sinus surgery including balloon dilation and will now operate within ArthroCare's ENT product area as a complement to the ArthroCare Coblation® and Rapid Rhino® product lines currently being used by ENT surgeons worldwide.
More information concerning ENTrigue's products can be found at www.entriguesurgical.com.
In connection with the transaction, Piper Jaffray & Co. served as financial advisor to ArthroCare and rendered a fairness opinion to ArthroCare's board of directors. DLA Piper served as legal advisor to ArthroCare. J.P. Morgan Securities LLC served as financial advisor and Norton Rose Fulbright served as legal advisor to ENTrigue.
ArthroCare develops and manufactures surgical devices, instruments, and implants that strive to enhance surgical techniques as well as improve patient outcomes. Its devices improve many existing surgical procedures and enable new minimally invasive procedures. Many of ArthroCare's devices use its internationally patented Coblation® technology. This technology precisely dissolves target tissue and limits damage to surrounding healthy tissue. ArthroCare also develops surgical devices utilizing other patented technology including its OPUS® line of fixation products as well as re-usable surgical instruments. ArthroCare is leveraging these technologies in order to offer a comprehensive line of surgical devices to capitalize on a multi-billion dollar market opportunity across several surgical specialties, including its two core product areas consisting of Sports Medicine and Ear, Nose, and Throat as well as other areas such as spine, wound care, urology and gynecology.
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