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Integra LifeSciences To Acquire ACell For Up To $400 Mln In Cash - Quick Facts

Medical technology company Integra LifeSciences Holdings Corp. (IART) announced Wednesday it has entered into a definitive agreement to acquire ACell, Inc. for an upfront cash payment of $300 million at closing, subject to customary purchase price adjustments, and cash payments of up to an additional $100 million upon the achievement of certain revenue growth milestones.

ACell is an innovative regenerative medicine company with a product portfolio based on a proprietary porcine urinary bladder matrix platform technology, MatriStem UBM. The transaction is expected to close in the first quarter of 2021, subject to the satisfaction of customary conditions, including regulatory approvals.

The acquisition of ACell is the next step in the expansion of Integra's Orthopedics and Tissue Technologies (OTT) segment. It adds proprietary technology platform and complementary products to grow Integra's regenerative portfolio.

Following the completion of the previously announced sale of Integra's orthopedics business, which is expected to occur in early January, OTT will be referred to as the "Tissue Technologies" segment.

Integra expects the financial effects of this transaction to be accretive to revenue growth and adjusted gross margins. The impact to adjusted EBITDA margin and adjusted EPS is expected to be neutral in year one and accretive in year two. The transaction is expected to exceed the Company's cost of capital by year three.

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