Michael Barbella, Managing Editor06.14.22
The pediatric orthopedic sector is contracting.
OrthoPediatrics Corp. is acquiring Pega Medical for $33 million—an upfront cash payment of $31 million and $2 million in stock, the latter of which includes certain restrictions for three years. Before the deal, OrthoPediatrics 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.
The purchase includes Pega Medical's Fassier-Duval Telescopic Intramedullary System, designed for patients suffering from Osteogenesis Imperfecta and other bone deformities.
“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," OrthoPediatrics CEO David Bailey said. "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.”
OrthoPediatrics is increasing its full year 2022 revenue guidance range to $125 million to $128 million, representing growth of 27 percent to 31 percent. 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 percent to 23 percent.
Founded in 1994 as a bioengineering services company, Pega Medical has evolved to focus on key innovation within the trauma and deformity patient population, including developing the Fassier-Duval Telescopic IM System, an implant designed to treat bony deformities in children with osteogenesis imperfecta without disrupting their normal growth. This has been a well-recognized treatment of OI around the world since its launch in 2000. For more than 25 years, the company has collaborated with OEMs, universities, and surgeons from different parts of the world in the development, evaluation and regulatory approval of innovative devices for pediatric patients. Pega Medical currently sell its products in more than 75 countries; it is based near Montreal, Canada.
Founded in 2006, OrthoPediatrics focuses exclusively on advancing the field of pediatric orthopedics. As such it has developed a comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 37 surgical systems that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics distributes its products in the United States and 45 countries outside the United States.
OrthoPediatrics Corp. is acquiring Pega Medical for $33 million—an upfront cash payment of $31 million and $2 million in stock, the latter of which includes certain restrictions for three years. Before the deal, OrthoPediatrics 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.
The purchase includes Pega Medical's Fassier-Duval Telescopic Intramedullary System, designed for patients suffering from Osteogenesis Imperfecta and other bone deformities.
“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," OrthoPediatrics CEO David Bailey said. "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.”
OrthoPediatrics is increasing its full year 2022 revenue guidance range to $125 million to $128 million, representing growth of 27 percent to 31 percent. 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 percent to 23 percent.
Founded in 1994 as a bioengineering services company, Pega Medical has evolved to focus on key innovation within the trauma and deformity patient population, including developing the Fassier-Duval Telescopic IM System, an implant designed to treat bony deformities in children with osteogenesis imperfecta without disrupting their normal growth. This has been a well-recognized treatment of OI around the world since its launch in 2000. For more than 25 years, the company has collaborated with OEMs, universities, and surgeons from different parts of the world in the development, evaluation and regulatory approval of innovative devices for pediatric patients. Pega Medical currently sell its products in more than 75 countries; it is based near Montreal, Canada.
Founded in 2006, OrthoPediatrics focuses exclusively on advancing the field of pediatric orthopedics. As such it has developed a comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 37 surgical systems that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics distributes its products in the United States and 45 countries outside the United States.
