Altiva Corporation - Exactech, Inc.
Increases 2008 revenue guidance with spinal products company acquisition
Gainesville, Fla. -- Exactech, Inc. (Nasdaq: EXAC), a rapidly growing orthopaedic device manufacturer, announced today that it closed on the acquisition of Altiva Corporation, a North Carolina-based spinal products company, effective January 1, 2008.
Exactech announced its exercise of its option and execution of a merger agreement to acquire Altiva last month based on a valuation of $25.0 million. Exactech's final payment of $6.7 million was funded through a combination of $5.1 million from its credit line and through the issuance of approximately 75,000 shares of Exactech common stock.
Altiva, which offers a spinal fusion product line with implants and instrumentation that address major spinal pathologies, has assembled a strong spinal products portfolio by combining intellectual property acquisitions with various distribution agreements.
Exactech Chairman and CEO Bill Petty said, “We are pleased to bring together two companies singularly focused on improving outcomes for patients by developing reliable, high-quality, cutting edge products to assist surgeons in providing the highest level of care for their patients.
Exactech’s size and reputation, coupled with Altiva’s innovative product development programs, will result in an exciting collaboration further advancing treatment of spinal disorders.”
Altiva’s annualized sales revenue is approximately $13 million, based on the results of the first nine months of 2007.
Altiva is expected to break even in terms of operating profit in the first half of 2008.
Exactech expects the transaction to be neutral to earnings in 2008 and accretive in 2009.
Looking forward, Exactech updated its 2008 targets for revenue to the range of $148 million to $156 million.
The company’s target for diluted EPS remained unchanged at $0.86 to $0.92.
The foregoing statements regarding targets for the quarter and full year are forward-looking and actual results may differ materially.
These are the company’s targets, not predictions of actual performance.
9800-I Southern Pine Blvd.
Charoltte, North Carolina 28273