British medical equipment manufacturer Smith+Nephew has acquired cementless partial knee system owner Engage Surgical in a deal worth up to $135m.
Engage Surgical’s partial knee system is said to offer long-term fixation through biologic integration, shorter operating times, and the shift to Ambulatory Surgery Centres (ASCs).
Smith+Nephew said that the acquisition is in line with its growth strategy, and has funded the transaction from available cash on hand, and debt facilities.
Smith+Nephew executive vice president and general manager Randy Kilburn said: “Smith+Nephew is now the only medical device company offering both cemented and cementless partial knee implants in the US.
“Through our Sports Medicine franchise we have an established, strong position in ASCs where the vast majority of partial knees in the US are performed.
“Our VISIONAIRE business, the high performance and small footprint of CORI, plus our partial knee portfolio, is a unique compelling offering for customers.”
With the acquisition, Smith+Nephew is enabled to boost its robotics and real intelligence capabilities, which support partial knee procedures through precise alignment.
Also, the transaction is expected to support the company in driving market expansion in the US, along with other markets, as regulatory approvals are secured.
Smith+Nephew has been offering CORI Surgical System which supports the JOURNEY II cemented unicompartmental knee system.
The Engage Surgical Partial Knee System, which is optimised for robotics, is anticipated to have an application with CORI in the future.
Also, the system is said to complement Smith+Nephew’s focus on serving the outpatient market, where most of the knee procedures performed in ASCs.
Engage Surgical has secured the US Food and Drug Administration (FDA) approval for its Partial Knee System, and is in limited market release in the US.
Engage Surgical chief executive officer Dan Justin said: “The Engage Surgical Team is excited about joining Smith+Nephew to help expand the impact of the Engage Surgical Partial Knee System and integrating it with the CORI Surgical System.
“Smith+Nephew is well-suited and well-prepared to continue our mission of providing better outcomes for knee arthroplasty patients.”
