Durham’s Bioventus to Acquire New York-based Misonix
Bioventus, a global orthobiologics company headquartered in Durham, will acquire Misonix, a New York-based developer of ultrasonic surgical devices, in a cash-and-stock transaction valued at about $518 million.
The combined company will be a “pure-play” regenerative medicine and orthopedics company “positioned with leading products and specialized salesforces serving a $15 billion total addressable market across the hospital, ambulatory surgical center, and office care settings,” the companies said in a news release.
“We are excited to further establish Bioventus as a differentiated, growth-focused medical technology company with deep and broad capabilities across a range of care settings and specialties,” said Ken Reali, chief executive officer of Bioventus. “We believe this acquisition will accelerate our growth opportunities, enhance our double-digit revenue growth, and provide a significant opportunity for long-term margin expansion.
“We believe the combination with Misonix will create significant value for our shareholders and enable us to better serve our customers with more comprehensive solutions and a broader portfolio. The new Bioventus will also unlock meaningful growth opportunities for the employees of both organizations.”
Same name, location
The combined company will operate as Bioventus with the headquarters remaining in Durham.
“We are thrilled to announce this agreement to combine with Bioventus and realize our next phase of commercial development,” said Stavros Vizirgianakis, chief executive officer of Misonix, based in Farmingdale, N.Y. “Bioventus shares Misonix’s commitment to improving patient outcomes, and we believe this combination will create value for our shareholders as the combined organization continues to drive innovation and increase physician demand.”
The highly complementary nature of the two businesses is expected to result in scale across a range of care settings, geographies and therapeutic areas, the companies said.
A definitive agreement for the acquisition has been unanimously approved by the boards of directors of both Bioventus and Misonix. The deal is expected to close in the fourth quarter of this year, subject to regulatory approvals, stockholder approval by both companies and other customary closing conditions.
Bioventus expects the transaction to add nearly $80 million of calendar year 2021 revenue and boost its long-term average annual revenue growth rate. The combination should also generate $20 million of annual pre-tax cost synergies by the end of the second full year following the completion of the transaction.
Vizirgianakis and Patrick Beyer, both members of Misonix’s board of directors, will join the Bioventus board at the closing of the transaction.
Bioventus and Misonix are both publicly held companies, and their stock shares are traded on the Nasdaq Global Exchange. Bioventus raised $119 million in its initial public offering of stock in February.
Misonix is the company’s second acquisition this year. In March Bioventus acquired California-based Bioness, a provider of neuromodulation and rehabilitation medical devices, for $45 million up-front and up to $65 million contingent on meeting certain milestones.
In June Bioventus also completed a minority investment in Vaporox, a Denver-based developer of an ultrasonic therapy for healing diabetic foot ulcers. Bioventus described the investment as “an entry point and allows us to take a phased approach to a potential acquisition.”
Bioventus develops and markets medical devices and biological products that address bone and joint conditions. The company was initially the biologics and clinical therapies unit of United Kingdom-based Smith & Nephew, a medical equipment company. In 2012, Smith & Nephew spun out Bioventus as a separate company with financial backing from healthcare investment firm Essex Woodlands.
Bioventus has more than 850 employees worldwide working through offices in Memphis, Valencia, Calif., Hod Hasharon, Israel, Mississauga, Ontario, Canada and its international headquarters in Hoofddorp, The Netherlands. Its products are expected to help about half a million people this year with better bone and joint function and reduced pain.