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Integra LifeSciences (NASDAQ:IART) is acquiring Surgical Innovation Associates (SIA) to bolster its plastic and reconstructive surgery portfolio.
SIA develops and sells DuraSorb, a resorbable synthetic matrix for plastic and reconstructive surgery.
Integra will buy SIA for $50M at closing, subject to customary purchase price adjustments, and pay up to an additional $90M upon the achievement of certain revenue and regulatory milestones.
The acquisition will advance Integra’s global strategy in breast reconstruction, expanding plans to access the U.S. market with devices approved by the FDA for use in implant-based breast reconstruction (IBBR) procedures, according to the company.
Integra said that DuraSorb’s resorbable synthetic technology will strengthen its plastic and reconstructive surgery portfolio, which includes SurgiMend PRS, a xenograft surgical matrix. Currently, there are no surgical matrices approved by the FDA specifically for use in IBBR.
The company noted that its its pre-market approval (PMA) application for SurgiMend is currently under review with the FDA.
“The SIA acquisition will bring us another step closer to reaching our ambition of becoming a global segment leader and innovator in breast reconstruction with future FDA approvals, investment in pipeline and evidence generation,” said Integra President and CEO Jan De Witte.
Revenue for DuraSorb in 2022 is expected to be ~$5M.
Integra added that the the transaction is expected to be dilutive to adjusted EPS by about $0.06 in year 1 and accretive to earnings in year 3, with a return on invested capital greater than 10% by year 5.
The deal is expected to close by the end of the year, subject to conditions.
Buyback:
In addition, Integra said that it planning to buy back $150M worth of shares as a part of a previous approval by the board.
The share repurchases are expected to occur in early 2023.
