San Diego’s NuVasive Inc. is acquiring medtech firm Biotronic NeuroNetwork for $98 million in cash, the company announced Monday.
The acquisition is expected to immediately increase NuVasive’s revenues, with a significant impact to the cash flow by next year, the company said.
NuVasive, which makes medical devices related to spine surgery, said the acquisition of Ann Arbor, Mich.-based Biotronic will expand the company’s offerings for the spine service line. That’s because Biotronic is a provider of monitoring services that help surgeons improve clinical outcomes of surgeries. The company provides certified specialists to monitor patients' nervous systems during surgery, while also offering remote physician oversight.
Biotronic supports more than 45,000 surgeries annually in more than 650 hospitals, providing real-time remote monitoring through proprietary software and a secure, virtual private network. The company brought in more than $50 million in revenue in 2015.
"We are extremely excited about this combination, as it more than doubles NuVasive's neurophysiology footprint, creating an at-scale services business with improved growth and operational benefits,” said Gregory T. Lucier, chairman and CEO of NuVasive, in a statement. “The addition of Biotronic enhances our service offerings and provides enormous potential to deliver greater integration across our procedurally-integrated portfolio, which uniquely differentiates NuVasive in the markets we serve."
NuVasive is one of San Diego’s largest public companies, with a market cap of $2.8 billion. The company, which brought in $811 million in revenue last year, said the acquisition of Biotronic will be immediately accretive to the company’s earnings.