French-American spine pain-management surgery specialist Companion Spine has entered a definitive agreement to acquire the Coflex Interlaminar Stabilization device (Corflex), CoFix Posterior MIS fusion system (CoFix) implants, along with Paradigm Spine’s business and assets, from Xtant Medical Holdings.

The $19.2m transaction includes $11m in cash at closing and $8.2m in short-term seller financing.

Xtant Medical plans to utilise the proceeds to decrease its long-term debt and increase cash liquidity.

The closure of the transaction is slated in the third quarter of this year, subject to Companion Spine securing financing and meeting other customary closing conditions.

As part of the agreement, Companion Spine has already paid Xtant a non-refundable cash deposit of $2.5m of the aggregated purchase price.

Up to two additional deposits of the same amount may be made if Companion Spine needs more time to receive financing.

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At or before closing, Companion Spine will pay an additional $8.5m, alongside an $8.2m unsecured promissory note.

The Coflex and CoFix systems have been marketed by Paradigm Spine in the US for 12 years and outside the US for 20 years.

Headquartered in Germany, Paradigm Spine is focused on designing, developing, marketing, and distributing spine implant solutions for spine pain-related disorders. 

The acquisition is claimed to enable Companion Spine to become the “first†sole source provider of a full range of indication-specific products for dynamic stabilisation and motion preservation implants. Furthermore, the deal will allow Companion Spine to widen its aim to treat spine pain through lumbar and cervical disease treatments.

Advisers involved in this acquisition for Companion Spine include Dorsey & Whitney as lead legal counsel, McDermott Will & Emery for tax and German legal matters, Farber for intellectual property legal counsel, and several other financial, strategic, and regulatory advisers.

Fox Rothschild served as legal counsel and LifeSci Partners as investor relations advisor for Xtant.

Xtant Medical CEO and president Sean Browne said: “This transaction is a significant step for us as we focus on our core business – the development of higher-margin, best-in-class orthobiologics – while also strengthening our balance sheet and streamlining our operations. 

“At the same time, these franchises will be in great hands given the Viscogliosi Brothers’ proven track record of successful commercial execution in the neuro-musculoskeletal space. We believe they, along with Companion Spine, are the ideal partners to continue driving the growth of Coflex, CoFix, HPS, and related spinal fixation technologies.â€

Companion Spine is a company within the portfolio of Viscogliosi Brothers, an investment company owned by a family that focuses on the neuro-musculoskeletal industry.

In 2023, Xtant Medical completed the acquisition of the Coflex and Cofix product portfolio from Surgalign Holdings for $17m.

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