CrossRoads Extremity Systems Acquires Four Differentiated Technology Assets from Surgical Frontiers to Advance Orthopedic Clinical Solutions

VCBeat (WeChat ID: vcbeat) has learned that on November 25, 2019, HealthpointCapital announced that CrossRoads Extremity Systems, a portfolio company of its Fund IV, had acquired four differentiated technology assets from Surgical Frontiers. This acquisition further advances CrossRoads’ strategy to build a leading company in the high-growth orthopedics sector. Financial terms of the transaction were not disclosed.

The specific details of this acquisition include: the KATOR series of advanced soft tissue products (for Achilles tendon repair, ligament stabilization, and arthroscopic rotator cuff repair); the OsteoPrecise series of precision cutting guides (for bone alignment in small-bone osteotomies and fusions); SpeedButton (for anatomic ligament reattachment); and the Metrics product portfolio (for high-precision, reproducible restoration of bone alignment and ligament function following ankle sprains and fractures). All acquired products are FDA-approved and were developed by Surgical Frontiers. The acquired products cover a total of 16 issued patents and 10 pending U.S. patent applications.

HealthpointCapital, founded in 2002, is a leading private equity firm focused on the musculoskeletal sector, led by CEO and Founder John H. Foster and Mike Mogul. With extensive operational expertise in medical technology and a deep network of relationships, HealthpointCapital helps its portfolio companies accelerate growth.

Mike Mogul, President of HealthpointCapital, stated, “Through our investment in CrossRoads in May 2019, we set out to build a unique portfolio of plate and staple technologies for bone fixation, thereby becoming a leader in the extremities market. Today, incorporating Surgical Frontiers into our innovation initiative marks a significant step toward that goal, adding highly differentiated soft tissue repair assets and further expanding CrossRoads’ product portfolio.”

CrossRoads Extremity Systems was founded in 2014 and is headquartered in Memphis, Tennessee, USA. The company’s mission is to develop and commercialize innovative technologies in the field of orthopedic extremities, providing surgeons and healthcare institutions with precise, user-friendly, cost-effective, and sustainable solutions to improve surgical outcomes and patient prognosis.

CrossRoads’ Active Stabilization technology is the only solution on the market today that provides simultaneous enhancement of stability and continuous compression, thereby optimizing conditions for bone healing during surgery. The company leverages this technology in a range of specific procedures, as well as in sterile-packaged implant and instrument systems, to treat indications in the upper and lower extremities. Additionally, the company’s EcoSMART line offers customers gamma-sterilized, reusable instruments. EcoSMART partially overcomes the inefficiencies associated with traditional non-sterile instrument trays, avoiding unnecessary waste.

Vernon Hartdegen, CEO and Co-Founder of CrossRoads, stated, “As the company experiences rapid growth, we are delighted to add a suite of technologies with distinct advantages in the field of patient care to our portfolio. These unique and highly complementary technologies and intellectual property will further enhance our product offerings and create cross-selling opportunities. This acquisition aligns perfectly with our mission to deliver better therapeutic outcomes for patients and provide surgeons with less invasive surgical solutions.”

Surgical Frontiers, founded in 2014 and headquartered in Logan, Utah, USA, has developed advanced surgical technologies for clinical use. The company focuses on musculoskeletal injuries and pathologies, collaborating with surgeons, healthcare companies, universities, and investors to bring advanced surgical techniques to market and improve healthcare.

(Compiled by Jiang Ying)