Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., a medical device company that designs, develops, manufactures and markets products for the surgical treatment of spine disorders, with a focus on treating conditions affecting the aging spine, announced today the closing of its previously announced acquisition of Scient'x Groupe SAS, a spinal implant company headquartered in France.
The combined company will be the third-largest independent spinal company with a global span of product distribution. Scient'x is the largest privately held independent spine company outside of the United States with distribution in over 50 countries.
As previously announced, the Company anticipates pro forma revenues for 2010 to be in a range of $220 million to $225 million, and pro forma full-year 2010 adjusted EBITDA to be in a range of $32 million to $35 million. The Company reiterates this guidance to reflect the 2010 pro forma affect on a 12-month basis, as if the acquisition closed on January 1, 2010. The acquisition is expected to be positive to the Company's 2010 EPS and accretive to the Company's 2011 EPS, excluding amortization of acquired intangible assets, transaction expenses and related restructuring charges.
In conjunction with the closing of the acquisition, the Company also amended and expanded its existing credit facility with Silicon Valley Bank and Oxford Finance Corporation. The amended credit facility expands the working capital line of credit from $15 million to $25 million, based upon eligible U.S. accounts receivable and inventory balances. The existing term debt facility held by both the Company and Scient'x, which is approximately $20 million in principal outstanding in the aggregate, remains in place. The maturity date of the amended credit facility is April 1, 2012. In connection with the amended credit facility the Company agreed to new financial covenants that are based on a fixed-charge coverage ratio. The original agreement contained financial covenants that consisted of both revenue and adjusted EBITDA targets.
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