NuVasive to Get SafePassage and Boost Services Strategy

NuVasive said it will acquire SafePassage, a provider of intraoperative neurophysiological monitoring (IONM) services, for an undisclosed amount. The acquisition will solidify NuVasive's position as the largest provider of outsourced IONM services, the San Diego-based spine company said. The deal comes at the end of a challenging year for NuVasive. The company has experienced significant management turnover this year, and the company is currently engaged in an ugly legal battle with competitor Alphatec. NuVasive says former exec Patrick Miles schemed for more than a year to disparage the company before jumping ship, but Alphatec defended Miles and called the lawsuit a "frivolous PR stunt." The abrupt departure of former chief operating officer Jason Hannon and chief financial officer Quentin Blackford prompted a 42-page report from short-seller GlassHouse Research. The report suggested that the turnover was no coincidence and accused NuVasive of using an "acquire-at-all-cost" strategy to achieve its $1 billion revenue goal for the year. “Based on our own calculations, we believe that the core business is suffering greatly at [NuVasive] and is being masked by recent acquisitions,” the authors noted. Whether that is the case or not, NuVasive's proposed acquisition of SafePassage is expected to strengthen the company's intraoperative neuromonitoring business line, which was formed in July 2016 when NuVasive acquired Biotronic NeuroNetwork and combined its service offerin...
Source: MDDI - Category: Medical Devices Authors: Tags: Medical Device Business Source Type: news