Summary
- RTI Surgical intends to acquire Paradigm Spine for up to $300 million in cash and stock.
- Paradigm has developed a non-fusion spinal implant device for spinal stenosis conditions.
- RTIX is paying a steep price for the deal, which management says will be accretive within 12-months after closing.
- Interested investors should keep an eye on RTIX for 2H 2019 evidence that management's transformation initiatives are producing positive results.
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Quick Take
RTI Surgical (RTIX) announced it has agreed to acquire Paradigm Spine for up to $300 million.
Paradigm Spine provides motion preservation in spinal stenosis patient via its non-fusion spinal implant.
RTIX management is continuing to execute on its plan to transform the company by acquiring differentiated and scalable technologies.
The deal for Paradigm, if approved by shareholders, won’t impact RTI’s financial results until well into 2019.
I suggest investors look again in 2H 2019 for evidence that management’s plans are producing results.
