Business
OrthoPediatrics Corp. Announces Deal to Acquire Pega Medical
Expands portfolio of trauma and deformity systems for pediatric orthopedics, including the Fassier-Duval Telescopic IM System™ WARSAW, Ind., June 14, 2022
About this update from Orthopediatrics Corp.
[{"type":"text","content":"Expands portfolio of trauma and deformity systems for pediatric orthopedics, including the Fassier-Duval Telescopic IM System™\nWARSAW, Ind., June 14, 2022 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, announced they have entered an agreement to acquire Pega Medical, including its Fassier-Duval Telescopic Intramedullary System™ designed for patients suffering from Osteogenesis Imperfecta and other bone deformities. David Bailey, Chief Executive Officer of OrthoPediatrics, commented, “We are excited to announce the agreement to acquire Pega Medical. Similar to OrthoPediatrics, the Pega organization has been focused exclusively on addressing unmet needs for children whose lives have been impacted by musculoskeletal disorders and diseases. Their product offerings include novel technologies to treat some of the most unique conditions in pediatric orthopedics. We are grateful for the leadership and vision of the Pega team, and founder Ariel Dujovne in particular. I am looking forward to building on his legacy and our shared cause of helping even more KIDS with orthopedic conditions!” TRANSACTION DETAILS AND FINANCIAL GUIDANCE OrthoPediatrics will acquire Pega Medical in a transaction valued up to $33 million. Under the terms of the agreement, OrthoPediatrics will acquire Pega Medical for an upfront cash payment of $31 million plus $2 million in stock – which includes certain restrictions for three years. Prior to the acquisition, OrthoPediatrics successfully increased its line of credit with Squadron Capital from $25 million to $50 million. The Company plans to use $31 million from the newly expanded credit facility to finance the transaction. Lastly, OrthoPediatrics is increasing its full year 2022 revenue guidance range to $125 million to $128 million, representing growth of 27% to 31%. On an organic basis, which excludes Pega Medical and MD Orthopaedics, OrthoPediatrics is reiterating its full year 2022 revenue guidance range of $118 million to $121 million, representing growth of 20% to 23%. About Pega MedicalFounded in 1994 as a bioengineering services company, Pega has evolved to focus on key innovation within the trauma and deformity patient population, including developing the Fassier-Duval Telescopi...