CrossRoads Extremity Systems Acquires Surgical Frontiers’ Innovative Orthopedic Assets to Expand Foot and Ankle Portfolio

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on November 25, 2019, local time, CrossRoads (CrossRoads Extremity Systems), a portfolio company of the U.S. private equity firm Healthpoint Capital, announced the completion of its acquisition of multiple assets from Surgical Frontiers. Financial details of the transaction were not disclosed.

In this acquisition, Mintz, Levi, Cohn, Ferris, Glovsky and Popeo served as legal counsel to Healthpoint Capital and CrossRoads, while Durham Jones & Pinegar served as legal counsel to Surgical Frontiers.

Surgical Frontiers, founded and operated by its current CEO Wade Fallin in 2014, is a medical company headquartered in Logan, Utah, USA, specializing in the treatment and care of musculoskeletal injuries. The company has developed advanced surgical technologies for clinical use and collaborates with surgeons, healthcare institutions, universities, and investors to bring these advanced surgical techniques to market, thereby improving bone health care.

This acquisition further advances CrossRoads’ strategy of building market-leading companies in the high-growth orthopedics sector. The specific assets acquired from Surgical Frontiers include:

1. The KATOR® series comprises advanced soft tissue-to-bone fixation products for Achilles tendon repair, ligament stabilization, and arthroscopic rotator cuff repair;

2. OsteoPrecise™ Series Precision Cutting Guides for Bone Alignment in Small Bone Osteotomies and Fusions;

3. The SpeedButton™ product is used for the reattachment of anatomical ligaments, offering greater pull-out strength and improved ligament coverage;

4. Metrics Product Portfolio, for High-Precision, Restorative Bone Alignment and Ligament Function in High Ankle Sprains and Ankle Fractures.

All acquired products are FDA-approved and were developed under Surgical Frontiers, led by Founder and CEO Wade Fallin. The acquired portfolio encompasses a total of 16 issued patents and 10 U.S. patent applications pending.

Mike Mogul, President of Healthpoint Capital, commented on the acquisition: “In May 2019, we invested in CrossRoads Extremity Systems, which leveraged its unique combination of plate and staple technologies for bone fixation to become a leader in the bone market. Today, Surgical Frontiers’ innovations mark a significant step toward this goal, adding to our highly differentiated soft tissue repair assets and further strengthening CrossRoads’ product portfolio.”

Vernon Hartdegen, CEO and Co-Founder of CrossRoads, stated, “As we continue on our trajectory of rapid growth, we are pleased to add a suite of technologies to our portfolio that offer significant advantages over the current standard of care. These unique, highly complementary technologies, knowledge, and expertise will further enrich our product portfolio and create cross-selling opportunities. This acquisition aligns perfectly with our philosophy of delivering better patient outcomes and providing surgeons with minimally invasive surgical solutions.”

Healthpoint Capital, established in 2002, is a leading private equity firm focused on the musculoskeletal sector. The company is led by CEO and Founder John H. Foster, former Group President of Stryker Corporation and an orthopedic surgeon, and Mike Mogul, former CEO of DJO Global. Healthpoint Capital combines extensive medical technology operational expertise, a strong private equity investment track record, and deep industry relationships to help portfolio companies accelerate growth.

CrossRoads Extremity Systems, founded in 2014 and headquartered in Memphis, Tennessee, is dedicated to developing and commercializing innovative technologies in the field of orthopedics. By providing surgeons with simple and accurate solutions and offering healthcare institutions approaches to sustainability and cost reduction, the company aims to enhance surgical experiences and improve patient outcomes. CrossRoads’ Active Stabilization® technology is the only solution on the market today that simultaneously provides enhanced stability and continuous compression, optimizing conditions for bone healing in fusion procedures.

(Compiled by Wang Fang)