Exactech to go private in TPG Capital acquisition

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Exactech (NSDQ:EXAC) said it inked a definitive merger agreement to be acquired by TPG capital in a move that will take the company private.

Under the deal, TPG Capital will pay approximately $42 per share to acquire all outstanding shares of Gainesville, Fla.-based Exactech, excluding a select number of management stockholders who agreed to exchange a portion of their shares for equity securities in the transaction. The deal values the company at $625 million.

“We believe that this agreement offers Exactech shareholders an opportunity to realize the company’s tremendous growth and capture the value that’s been created since going public 21 years ago, at a significant premium to the current share price,” Exactech lead independent director Jim Binch said in a prepared statement.

“This agreement provides maximum value for our shareholders, who have shared our vision and supported our growth over the past two decades,” Exactech CEO David Petty said in a press release.

The deal was approved by the board of directors and the company’s founders, Dr. Bill Petty, Betty Petty and CEO David Petty, have agreed with TPG to vote their shares in favor of the merger and to exchange a portion of those shares for new shares in the parent company post-merger. The share exchange will be made at the same $42 value, the company said.

“As long-term healthcare investors, we aim to identify and partner with strong companies that are in growing, attractive sectors. With their strong commitment to patients and surgeons and a comprehensive product portfolio, Exactech has strategically built a platform poised for significant growth. We are thrilled to partner with CEO David Petty, the company founders, the Exactech management team and TPG Capital advisors Jeff Binder and Dan Hann to further realize Exactech’s exciting potential,” TPG Capital managing partner Todd Sisitsky said in a prepared release.

Upon completion of the deal, Exactech will be a privately-held company and will no longer have shares listed on the NASDAQ stock exchange. The deal is expected to close during the 1st quarter of next year.

“The basis of our investment thesis is that there are outstanding opportunities for nimble, innovative and responsive companies to invest in growth and compete with the larger competitors in the orthopaedic industry. I look forward to working with management to fully realize the potential of a company for which I have always had great respect,” TPG Capital senior advisor Jeff Binder said in prepared remarks.

In June, Exactech said it launched its ExactechGPS TKA Plus software application designed to provide surgeons with real-time intraoperative computer guidance during total knee arthroplasty procedures.

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