Bone replacement specialist ApaTech Ltd is to be acquired by the US healthcare group Baxter International for up to $330 million, giving Baxter ownership of the synthetic bone graft material Actifuse.
The material was developed on the basis of research initially carried out by the scientific founder Bill Bonfield at the Interdisciplinary Research Centre in Biomedical Materials, Queen Mary College, University of London.
ApaTech has raised $60 million in venture capital since it was formed in 2001, and had sales of approximately $60 million in 2009.
“This is a great event for ApaTech, Baxter, our customers and our employees. The combination of our market presence and insights with the resources of Baxter will enable us to deliver innovative new technologies to more patients worldwide,” said Simon Cartmell, CEO, ApaTech.
The agreement includes an upfront cash payment by Baxter of $240 million. Baxter may make additional payments of up to $90 million related to the achievement of sales milestones.
ApaTech’s current major shareholders are Encore Ventures, a division of DFJ Esprit, and US investor, Healthcor Partners. Encore acquired the stake when it took on 3i plc’s European venture portfolio in 2009. Other shareholders include MTI, which provided the early stage capital, founder shareholders and members of ApaTech’s management team.