Bioventus Inc., a global leader in innovations for active healing, has signed a definitive agreement to sell the Advanced Rehabilitation business, Bioness, to Accelmed Partners, a private equity firm focused on acquiring and growing commercial-stage HealthTech companies. 
 
The divestiture of the Advanced Rehabilitation business reduces the Company’s annual revenue by approximately $50 million and annual Adjusted EBITDA by approximately $6 million.
 
The transaction includes a total cash consideration of $45 million, including $25 million in cash at close (subject to a working capital adjustment) and up to $20 million in potential post-closing earn-out payments. At the time of closing, Bioventus expects the sale to be worth $20 million after fees and expenses, which will be used to repay existing debt.
 
“This agreement reflects our deep respect for the Advanced Rehabilitation business and the many patients who benefit from its life-changing technology. The business will now be positioned in an environment that enables higher focus moving forward. Simultaneously, this divestiture allows Bioventus to focus on execution within our core, while also enhancing our liquidity,” said Rob Claypoole, Bioventus’s President and Chief Executive Officer.
 
Dr. Uri Geiger, Managing Partner of Accelmed, said, “We are excited to welcome the Advanced Rehabilitation business of Bioness to our investment portfolio. We believe Bioness’ Advanced Rehabilitation products are critical for helping patients with stroke and other neuromuscular conditions in their rehabilitation journey. We believe that there is a significant opportunity for growth and intend to invest in developing and extending the product line to continue improving patients’ lives.”
 
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2024.
 
Moelis & Company LLC was the acting financial advisor and Reed Smith LLP was the legal advisor to Bioventus in connection with the sale of its Advanced Rehabilitation business. Jones Day and Stevens & Lee acted as legal advisors to Accelmed.