Spinal-device manufacturer Kyphon, Sunnyvale, Calif., has been given partial clearance to pursue its acquisition of products created by Disc-O-Tech, a privately held spinal-device company located in Israel. The Federal Trade Commission and U.S. Department of Justice have granted early termination of the acquisition waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The clearance is specific to one of two definitive acquisition agreements Kyphon signed with Disc-O-Tech last December. The deal calls for Kyphon to pay $220 million plus $20 million in contingency fees to acquire the Israeli devicemakers portfolio. The approved transaction includes ownership and intellectual property rights associated with the minimally invasive spinal-fusion system B-Twin Expandable and the vertebral-compression fracture repair system Sky Bone Expander. Kyphon has agreed to pay $100 million for the technologies, which are not currently approved for use in the U.S.
The second, yet-to-be-approved transaction calls for Kyphon to pay $120 million to acquire Disc-O-Techs Confidence Cement System, which is also used in the repair of vertebral-compression fractures and is approved in the U.S.
The announcement of the acquisitions approval comes less than a week after news that federal agencies gave clearance for Minneapolis-based devicemaker Medtronic to move forward with its acquisition of Kyphon for $3.9 billion. That deal was announced in July. -- by Shawn Rhea
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