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CrossRoads Extremity Systems and HealthpointCapital Announce Merger Agreement
MEMPHIS, Tenn., May 14, 2019 /PRNewswire/ -- CrossRoads® Extremity Systems, a privately held medical device company and leading innovator in foot & ankle implant systems and services, announced today a merger agreement with HealthpointCapital. With the agreement, HealthpointCapital will take a controlling interest in the Company, providing access to additional operating capital for continued organic growth, market expansion and bolt-on acquisitions to support the rapid growth of the Company.
"HealthpointCapital is an ideal partner for us given their expertise and focus in the musculoskeletal space," said Vernon Hartdegen, CEO and Co-Founder of CrossRoads. "Our partnership strengthens our mission to be the leading innovator in the extremity foot & ankle space."
Utilizing advanced technology and materials since its inception in 2014, CrossRoads quickly differentiated itself in the foot and ankle sector with its Active Stabilization® technology, the only technology to simultaneously offer enhanced stability with continuous compression, optimizing conditions for bone healing in fusion procedures. Complementing its unique implant designs are streamlined EcoSMART® instrumentation systems that offer an improved experience for surgeons in the operating room. The Company's EcoSMART® Instrument Service provides customers with gamma sterilized, reusable instruments for every surgical case and post-surgery recovery and processing of those instruments. EcoSMART reduces the inefficiencies of traditional non-sterile instrument trays and eliminates the waste associated with typical disposable instruments.
"CrossRoads' unique product platform, particularly its Active Stabilization® technology and EcoSMART® Service, made them an attractive investment in the extremity sector, which continues to be one of the most rapidly growing segments of the musculoskeletal market," said Mike Mogul, President and Managing Director of HealthpointCapital. "With our deep understanding of this space, CrossRoads' exclusive technology made them a logical addition to our portfolio of rapidly growing companies."
"CrossRoads' investors are excited about this new relationship with HealthpointCapital and what it means for the future of CrossRoads. We remain holders with a substantial stake in the Company's future," said Gary Stevenson, co-founder and Managing Partner of MB Venture Partners. "Since our initial investment four and a half years ago, management has been excellent stewards of investors' capital creating the value that led to this transaction. We have every reason to believe they will continue to do so going forward."
MB Venture Partners, a Memphis-based investment firm, was the lead institutional investor in CrossRoads prior to the merger. Both MB Venture Partners and CrossRoads' management team will remain significant investors. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. served as legal advisor to HealthpointCapital. Waller, Lansden, Dortch, & Davis, LLP served as legal advisor to CrossRoads.
About CrossRoads Extremity Systems
Headquartered in Memphis, TN, CrossRoads was founded in 2014 by Glen Coleman, Vernon Hartdegen and Chad Hollis. The Company's mission is to develop and commercialize innovative technologies in the orthopedic extremity sector that improve the operating room experience and patient outcomes through simplicity and accuracy for the surgeon, and sustainability and cost reduction for healthcare institutions. CrossRoads' Active Stabilization® technology is the only technology on the market today to simultaneously offer enhanced stability with continuous compression, optimizing conditions for bone healing in fusion procedures. The Company leverages this technology in a broad range of procedure-specific, sterile-packed implants and instrumentation systems cleared for both lower and upper extremity indications. The Company's EcoSMART® Instrument Service provides customers with gamma sterilized, reusable instruments for every surgical case and post-surgery recovery and processing of those instruments. EcoSMART® reduces the inefficiencies of traditional non-sterile instrument trays and eliminates the waste associated with typical disposable instruments.
For more information please visit www.crextremity.com
Founded in 2002, HealthpointCapital is the leading private equity firm focused exclusively on the musculoskeletal sector. The Firm is led by CEO and founder John H. Foster and Mike Mogul, former Group President, Orthopaedics at Stryker Corporation and former CEO of DJO Global. HealthpointCapital brings together extensive medical technology operating experience, a strong private equity track record, and a deep network of relationships to help portfolio companies accelerate growth. Notable recent exits for HealthpointCapital include OrthoSpace (acquired by Stryker), Blue Belt Technologies (acquired by Smith & Nephew) and BioHorizons (acquired by Henry Schein).
For additional information, visit www.healthpointcapital.com.
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SOURCE CrossRoads Extremity Systems