Alphatec Holdings, Inc. · NASDAQ:ATEC
Alphatec — Merger or Acquisition (February 2020)
16 slides from Alphatec's merger presentation, Feb 28, 2020
Slide 1: Transforming Our Portfolio with the Acquisition of EOS Imaging
INFORMING BETTER SURGERY WITH ADVANCED SPINE IMAGING TRANSFORMING OUR PORTFOLIO WITH THE ACQUISITION OF EOS IMAGING Pat Miles, Chairman & CEO | February 28, 2020 Exhibit 99.2
Slide 2: Forward-looking statements
This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could caus
Slide 3: Introducing EOS Imaging
INTRODUCING EOS IMAGING RAPID, CALIBRATED, FULL-BODY SCAN BIPLANAR SPINE IMAGING & ANATOMICAL MODELING Academic influence Units installed globally 350 Customized care Technological foundation +
Slide 4: Spine's top have invested in enabling imaging technologies
SPINE’S TOP 5 HAVE INVESTED IN ENABLING IMAGING TECHOLOGIES We think about it differently. We intend to use imaging to holistically inform spine surgery. 75% share
Slide 5: We have created a conduit to deliver information into the operating room
We have created a conduit to deliver information into the operating room WITH EOS, WE WILL BETTER INFORM THE OPERATIVE EXPERIENCE L R
Slide 6: EOS Technology
EOS TECHNOLOGY “INTERNATIONAL CONSENSUS” ON HOW TO INFORM SPINE SURGERY* * Source: Sigurd H. Berven, Steven J. Kamper, Niccole M. Germscheid, Benny Dahl, Christopher I. Shaffrey, Lawrence G. Lenke, Stephen J. Lewis, Kenneth M. Cheung, Ahmet Alanay, Mannabu Ito, David W. Polly, Yong Qui, Minus de Kle
Slide 7: Better informed at all stages of care
BETTER INFORMED AT ALL STAGES OF CARE PRE-OP PLANNING SURGERY POST-OP ASSESSMENT FOLLOW-UP FULL-BODY BIPLANAR IMAGES DIAGNOSIS More accurate understanding of patient alignment Elevates likelihood of surgical goal fulfillment by integrating fully informed plans into surgery Correlates post-operative
Slide 8: EOS' top U.S. hospital penetration
EOS’ TOP U.S. HOSPITAL PENETRATION Significant academic footprint 90% of the top 10* 80% of the top 25* * US News & World Report Best Orthopedic Hospitals list (2019-2020)
Slide 9: Prestigious international footprint
PRESTIGIOUS INTERNATIONAL FOOTPRINT 40% of installed base N America 45% 15% A foundation to support future global expansion of installed base EMEA of installed base AsiaPac
Slide 10: Clinical prowess strategic rationale
CLINICAL PROWESS STRATEGIC RATIONALE Combines world-class “advanced imaging” know-how with ATEC spine expertise Advanced, 3D surgical planning Anterior column - # levels, size, angle Posterior column - fixation planning, # levels, screw sizes, rod contouring, release Patient-specific biomechanical m
Slide 11: Operational and organizational advantages
Customized surgical configurations optimize inventory planning and cost to serve Complementary sales channels Elevates the ATEC brand with Nobel-prize winning radiation detection technology* that has strong academic influence and >500 peer-reviewed publications Creates access to EOS’ global account
Slide 12: Financial Impact
FINANCIAL IMPACT Jeff Black, VP & CFO | February 28, 2020
Slide 13: P&L Impact
P&L IMPACT Expands revenue base and accelerates growth, adding ~$40M* to annual revenue Equipment installed base 5-Year CAGR >25% ~75% of revenue mix** Recurring maintenance 5-Year CAGR >35% ~25% of revenue mix** Expected to be accretive to adjusted EBITDA and free cash flow in the first full year o
Slide 14: Economics Deal Summary
ECONOMICS DEAL SUMMARY Purchase Price: up to $88M, plus ~$33.9M retirement of debt €2.80 (~$3.08) cash per share cash or 0.50 ATEC common shares per EOS share ~€7.01 (~$7.71) per convertible bond, or ~$33.9M STRUCTURE Tender Offer Agreement: ATEC will file a public tender offer for EOS shares Filing
Slide 15: Financing Summary: Perceptive Advisors
FINANCING SUMMARY: PERCEPTIVE ADVISORS UP TO $160M NEW CAPITAL* $60M Refinancing Tranche to retire existing term debt and revolver Up to $100M Tender Offer Tranche to fund cash required to complete purchase of EOS * For additional information, please refer to the press release issued 2.27.20 at www.
Slide 16: Informing Better Surgery with Advanced Spine Imaging
INFORMING BETTER SURGERY WITH ADVANCED SPINE IMAGING TRANSFORMING OUR PORTFOLIO WITH THE ACQUISITION OF EOS IMAGING
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