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After going public with a $100 million initial public offering earlier this year, Bioventus has now made its largest-ever acquisition.
The Durham biotechnology company, which makes treatments for knee and joint pain as well as bone graft substitutes, said on Thursday that it was buying New York-based Misonix in a cash-and-stock deal worth $518 million.
The deal will add Misonix’s product line to Bioventus’ roster, including Misonix’s BoneScapel, an ultrasonic tool that helps surgeons cut through bones.
“We believe this acquisition will accelerate our growth opportunities, enhance our double-digit revenue growth, and provide a significant opportunity for long-term margin expansion,” Bioventus CEO Ken Reali said in a statement.
Bioventus, founded in 2011, said it believes the deal will increase revenue in 2021 by $80 million, and that it could save $20 million through the combination of the two companies.
The deal is subject to some regulatory approvals, and likely will not close until the fourth quarter of this year, Bioventus said. Wells Fargo helped finance the cash-portion of the deal, the company said.
Bioventus made $321 million in revenue in 2020, a figure that was down around 5.6% from 2019 due to the “disruption caused by the COVID-19 pandemic,” the company said in its IPO filing earlier this year.
Since going public in February, shares of Bioventus’ stock are up 23% to $15.99.
Bioventus said it employs 680 people worldwide, a majority of those in the U.S. The company’s headquarters are in south Durham. It has a manufacturing facility in Cordova, Tennessee.
Around 150 Bioventus employees are based in Durham.
This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. Learn more; go to bit.ly/newsinnovate