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Baxter to acquire all outstanding equity of ApaTech

Healthcare company Baxter International has agreed to acquire all the outstanding equity of ApaTech, a private equity-backed UK-based orthobiologic products company, for total consideration of up to USD330m.

As a result of the acquisition, Baxter will acquire Actifuse, a silicate substituted calcium phosphate synthetic bone graft material which is currently marketed in the US, EU and other select markets around the world, as well as manufacturing and R&D facilities located in the UK, US and Germany.

“This is a significant step in enhancing Baxter’s position in the rapidly growing orthobiologics space, and our leadership in regenerative medicine,” says Ron Lloyd, vice president and general manager, biotherapeutics and regenerative medicine, Baxter. “Actifuse will allow us to immediately enter the emerging bone fusion category, and ApaTech’s product pipeline is highly complementary to our existing commercial and technical capabilities in biosurgery.”

“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,” says Simon Cartmell, chief executive of ApaTech. “We are delighted to announce this transaction, and look forward to the future of our combined organizations with confidence and excitement.”

The agreement includes an upfront cash payment by Baxter of USD240m. Baxter may make additional payments of up to USD90m related to the achievement of sales milestones.

The transaction is expected to close in the first quarter 2010, subject to customary closing conditions and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

This transaction is not expected to have a material impact on Baxter’s 2010 financial results.

ApaTech’s current major shareholders are Encore Ventures (a division of DFJ Esprit) and US investor Healthcor Partners. Other shareholders include MTI, which provided the early stage capital, founder shareholders and members of ApaTech’s management team.

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