Business Wire01.05.18
RTI Surgical Inc., a global surgical implant company, signed an agreement to acquire Zyga Technology Inc., with closing subject to filing with the state of Delaware. Zyga Technology is a leading spine-focused medical device company that develops and produces innovative minimally invasive devices to treat underserved conditions of the lumbar spine. Zyga Technology’s primary product is the SImmetry Sacroiliac Joint Fusion System.
“Acquiring Zyga Technology further advances our strategic transformation focused on reducing complexity, driving operational excellence and accelerating growth,” said Camille Farhat, president and CEO. “We are increasing our focus on both internal development and external investment, and acquiring Zyga Technology’s innovative minimally invasive treatment both accentuates our robust spine portfolio and opens significant opportunities to accelerate growth.”
Farhat added, “The acquisition provides access to a procedure that has been growing in excess of 20 percent in recent years and leverages the core competencies of our Spine franchise. We believe it is perfectly aligned with our Spine-focused expansion strategy to pursue niche differentiated products, to gain scale and customer retention and support portfolio pull-through along the way. As part of the RTI team, we believe Zyga has the potential to produce significant growth by gaining market share, growing procedure volume and driving increased adoption. SImmetry is a differentiated product designed to drive fusion and supported by clinical data and, with access to RTI’s larger, sophisticated sales force, we will introduce the system to a much wider surgeon audience.”
The sacroiliac joint fusion (SIJF) market has seen significant growth in recent years and is estimated currently to be a $100 million market in the United States. By 2024, the SIJF market in the US is expected to exceed $200 million, anticipated to be driven mainly by an increase in procedure volumes and adoption by new surgeons.
Zyga Technology is a private company with approximately 30 employees and approximately $4 million in annual revenue. Upon closing, RTI Surgical will fund the acquisition through a combination of cash and borrowing under its existing credit facility. Terms of the deal were not disclosed. The agreement has been executed as of today, January 4, 2018, by both parties. Closing will occur following the re-opening of the Delaware Department of State, which is presently closed due to inclement weather.
“Acquiring Zyga Technology further advances our strategic transformation focused on reducing complexity, driving operational excellence and accelerating growth,” said Camille Farhat, president and CEO. “We are increasing our focus on both internal development and external investment, and acquiring Zyga Technology’s innovative minimally invasive treatment both accentuates our robust spine portfolio and opens significant opportunities to accelerate growth.”
Farhat added, “The acquisition provides access to a procedure that has been growing in excess of 20 percent in recent years and leverages the core competencies of our Spine franchise. We believe it is perfectly aligned with our Spine-focused expansion strategy to pursue niche differentiated products, to gain scale and customer retention and support portfolio pull-through along the way. As part of the RTI team, we believe Zyga has the potential to produce significant growth by gaining market share, growing procedure volume and driving increased adoption. SImmetry is a differentiated product designed to drive fusion and supported by clinical data and, with access to RTI’s larger, sophisticated sales force, we will introduce the system to a much wider surgeon audience.”
The sacroiliac joint fusion (SIJF) market has seen significant growth in recent years and is estimated currently to be a $100 million market in the United States. By 2024, the SIJF market in the US is expected to exceed $200 million, anticipated to be driven mainly by an increase in procedure volumes and adoption by new surgeons.
Zyga Technology is a private company with approximately 30 employees and approximately $4 million in annual revenue. Upon closing, RTI Surgical will fund the acquisition through a combination of cash and borrowing under its existing credit facility. Terms of the deal were not disclosed. The agreement has been executed as of today, January 4, 2018, by both parties. Closing will occur following the re-opening of the Delaware Department of State, which is presently closed due to inclement weather.
