3D printing company, Materialise NV has just announced the acquisition of UK-based OrthoView Holdings Limited, a leading global provider of 2D digital pre-operative planning and templating solutions for orthopedic surgeons. You may be wondering how the 2D company and the 3D company complement each other, but it is, indeed a cosy fit. Just last month, Materialise highlighted the successful completion of the first total knee surgery that was preplanned by means of the Materialise X-ray knee guide solution. The newly developed Materialise technology allows for the preplanning of knee replacement surgeries as well as the 3D printing of related surgical guides, solely on the basis of 2D X-ray images.
Thus, this deal is likely to secure Materialise’s continued leadership in the field of medical applications that utilise cutting edge software and 3D printing hardware for the benefit of patients all over the world. According to the company, the aim is to provide: “a one-stop shop for surgical planning software tools and corresponding 3D printed medical devices.”
Materialise founder and CEO Fried Vancraen commented, “We are extremely proud that OrthoView has joined the Materialise Group. With an outstanding reputation in the surgical pre-planning world, complementary product portfolio and a robust sales reach, OrthoView is an ideal fit for Materialise. Its X-ray based, pre-operative planning software is used in 2000 hospitals worldwide and is connected to many Picture Archiving Communications Systems (PACS). Our combined expertise and sales force will allow us to offer, through various channels, a complete range of services and solutions to surgeons and hospitals; with 2D as well as 3D planning tools for almost any type of medical images and with the possibility to offer corresponding 3D printed surgical guides and models. With our combined team, Materialise is now even better positioned to bring new patient-specific healthcare innovations to market to cost-effectively deliver improved and customized solutions to patients.”
OrthoView currently serves more than 11,000 orthopedic surgeons in 60 countries globally, focusing primarily on joint replacements, and this opens up a raft of new channels for Materialise’s expertise in 3D.
In terms of the deal itself, Materialise acquired OrthoView for a cash payment of £8.47 million (likely a direct result of the IPO), and a possible additional earn out payment of up to £0.36 million. At completion, OrthoView had an estimated £1.2 million in cash and cash equivalents on hand and no financial debt. The transaction, which was signed and closed simultaneously, is expected to be accretive to earnings per share within 12 months for Materialise.
OrthoView currently employs 23 people, all of whom are expected to join Materialise. According to John Chambers, the company’s co-founder and CEO: “OrthoView is thrilled to become part of Materialise. Surgeons and PACS partners have always seen 3D planning as a natural addition to the OrthoView product portfolio, but building up that kind of expertise requires years of development and a huge investment. With Materialise already at the forefront of this technology, our team can quickly expand the solutions we offer to surgeons worldwide.”
Mr. Chambers, who will continue his career within the Materialise group, also sees potential to increase the global reach of OrthoView’s current product portfolio as a result of the transaction.
Seems like a good fit….
