SmartTRAK believes the complimentary product portfolios provide a comprehensive offering and should provide scale to compete with larger pure-play spine players like GMED and NUVA. While there is an upside to the consolidation, from a contracting and price erosion perspective, it remains to be seen whether the tailwinds will outweigh the dis-synergies such as hardware overlap, customer consolidation and sales force disruption. Separately, both companies employ an independent distributor model for the distribution of their spinal hardware products, but with increased resources and R&D, the combined company will be able to attract larger, exclusive distribution partners, while opening possibilities for investing in direct sales representatives in certain strategic markets to engage an even broader surgeon base.
The combined company, which will be named before the closing in Q123, will be headquartered in Lewisville, Texas, but will maintain primary offices in Carlsbad, along with some others. Keith Valentine, current SeaSpine President and CEO, will serve as President, CEO and board member for the combined company and Jon Serbousek, current Orthofix President and CEO, will become executive chairman.
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