), a maker of less invasive surgical products, recently revealed
that it has concluded the acquisition of ENTrigue Surgical, Inc.
in a cash transaction.
The purchase price, based on the merger agreement, was $45
million subject to working capital modifications as well as
adjustment for an escrow amount. The former stockholders of
ENTrigue will be eligible to receive contingent amounts for the
next five years. ENTrigue was a closely held corporation.
Piper Jaffray & Co. was the financial advisor for
ArthroCare and DLA Piper was its legal advisor. J.P. Morgan
Securities LLC functioned as financial advisor while Norton Rose
Fulbright acted as legal advisor to ENTrigue.
ENTrigue brings to market novel instruments and implants for
surgery including balloon dilation. Following the acquisition, it
will function as a part of ArthroCare's ENT expertise. ENTrigue
will provide traction to Rapid Rhino and ArthroCare Coblation
offerings required in surgery for sinusitis, which are utilized
by ENT surgeons globally.
It is estimated that over 30 million people in the U.S. are
afflicted by sinusitis. The condition is marked by infection and
inflammation of the sinuses. About half a million patients of
sinusitis receive surgical treatment in the U.S. every year.
ArthroCare produces implants and devices which improve
surgical procedures and enhance outcomes. Its offerings permit
less invasive operations. Certain ArthroCare offerings utilize
its globally patented Coblation expertise.
Furthermore, ArthroCare is bringing to market instruments that
use its patented Opus expertise. ArthroCare's strategy is to
derive synergies by providing a complete set of surgical items,
which will permit it to tap a large market.
The stock carries a Zacks Rank #4 (Sell). We are more
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