Axogen pairs a $200 million BioCircuit acquisition with a share offering

Axogen ($AXGN) agreed to acquire BioCircuit Technologies for $200 million in cash, adding the NerveTape platform for sutureless peripheral-nerve repair. The buyer expects the transaction to support revenue growth and improve adjusted EBITDA margin and adjusted earnings per share in the first full fiscal year after completion. It also intends to maintain positive free cash flow.

Alongside the acquisition, Axogen priced an offering of 4.91 million common shares at $42.50 each, generating approximately $208.7 million in gross proceeds before expenses. Underwriters have an option to buy additional shares. Substantially all net proceeds are intended to fund the acquisition, but the financing is not conditional on the deal closing. Completion of the purchase remains subject to the required conditions, including a separation of certain BioCircuit research activities.

Sources:

• Axogen — BioCircuit acquisition agreement
• Axogen — public-offering pricing