Accelus Proposes CHP Merger Corp. ‘Business Combination’

Integrity Implants Inc. d/b/a Accelus, a commercial stage medical technology company focused on accelerating the adoption of minimally invasive surgery (MIS) as the standard of care in spine, and CHP Merger Corp., a special purpose acquisition company, or SPAC, formed by an affiliate of Concord Health Partners, have entered a definitive business combination agreement. Upon the closing of the business combination, CHP Merger Corp. will be renamed Accelus. The business combination is expected to be completed in early 2022.

Accelus CEO and Co-Founder Chris Walsh said, “We believe our highly differentiated, high-margin product portfolio has the power to drive broad adoption of robotics and minimally invasive techniques in spinal care, both in hospitals and ASCs, by addressing critical constraints related to cost and efficiency. Our products can uniquely meet demand across broad market segments with adaptable solutions to cover each surgeon’s preferred approach and each healthcare facility’s space and budget limitations, embodying our principle of access without compromise. This transaction stands to significantly accelerate our commercial efforts and to transform spinal surgery with MIS approaches.”
 
Based in Palm Beach Gardens, Fla., and established through the combination of Integrity Implants Inc. and Fusion Robotics LLC, Accelus is a commercial stage medical technology company with a mission to accelerate the adoption of minimally invasive surgery as the standard of care in spine. With a portfolio of MIS spinal implants leveraging its proprietary Adaptive Geometry technology and a compact precision robotics platform, Accelus is focused on improving procedures and outcomes, creating favorable economics, and providing broad accessibility across end markets, including ambulatory surgery centers and internationally.
 
Upon closing of the business combination, the combined company will have an estimated pro-forma enterprise value of approximately $482 million.
 
The proposed transaction has been unanimously approved by the boards of directors of each of CHP Merger Corp. and Accelus and is subject to the approval of the stockholders of CHP Merger Corp. and Accelus, and the satisfaction or waiver of other customary conditions, including a registration statement on Form S-4 being declared effective by the U.S. Securities and Exchange Commission (SEC). Piper Sandler is serving as exclusive financial advisor to Accelus. Cadwalader, Wickersham & Taft LLP is serving as legal advisor to Accelus.
 
Credit Suisse is serving as financial and capital markets advisor, and J.P. Morgan Securities LLC is serving as a capital markets advisor to CHP Merger Corp. Ropes & Gray LLP is serving as legal advisor to CHP Merger Corp. and the private placement agents.

“Since our inception, we have sought opportunities to partner with companies that are disruptors of the status quo through working to lower costs and expand access to quality healthcare,” said Joseph Swedish, chairman of CHP Merger Corp. “Accelus is not only a leader in this regard, but we are confident they are poised to become a leading innovator in the spinal health market. We’ve been so impressed with Chris and his team’s mission and sense of purpose, and we’re thrilled to partner with the entire Accelus team on their mission to redefine minimally invasive surgery as the new standard of care in spine.”
 
Accelus is committed to accelerating minimally invasive spine surgery through its enabling technology with broad accessibility to previously underserved markets. CHP Merger Corp. is a Special Purpose Acquisition Vehicle formed by an affiliate of Concord Health Partners (“Concord”). Concord Health Partners is a healthcare private equity firm that invests in growth stage companies with innovative technologies that advance healthcare through lower costs, higher quality and expanded access to care.
 
Concord Health Partners has a strategic partnership with the American Hospital Association (AHA), a national health care industry group comprised of nearly 5,000 members. The AHA has invested in the sponsor alongside Concord Health Partners and will leverage its marketing capabilities, thought leadership and network of relationships to fast-track Accelus’s growth and accelerate its market adoption.