Sector: Health Care Services
Investment Date: 2008
Description: Intra-operative Neurophysiological Monitoring
Status: Acquired by NuVasive in 2016
Headquarters: Ann Arbor, MI
In 1978, Biotronic was founded in response to new medical evidence that monitoring the function of the somatosensory pathways through the spine could aid in preventing debilitating injuries to the spinal cord during scoliosis surgeries. Biotronic’s goal was to provide the highest-quality, cost-effective intra-operative monitoring services available to physicians and hospitals, anytime, anywhere. By focusing on those core tenets Biotronic became the preeminent provider of intra-operative monitoring solutions.
Biotronic had grown steadily through conservative management of cash flow in order to maximize service quality and customer satisfaction. The market for outsourced intra-operative neurophysiological monitoring was highly fragmented, and Biotronic’s management team was confident that with growth capital their firm had significantly greater potential for organic and acquisition driven expansion. They sought a financial partner who could not only fund growth and assist with the Company’s acquisition strategy, but also provide partial liquidity to the founder.
How Great Point Partners Helped
Great Point Partners Partners approached Biotronic in late 2007 about being a capital partner and invested ten months later. The CEO liked how “Great Point's professionals had conducted a strategic assessment of the industry prior to our first telephone conversation.” Biotronic used the capital to provide partial liquidity to the founder, deepen its market penetration, and make selective acquisitions. “We knew that Great Point Partners Partners would provide the Company with significant capital but more importantly they would help us proactively identify and pursue acquisition targets to make Biotronic a bigger, more dynamic company”.
In the eight years Great Point Partners was invested in Biotronic, revenue grew 150% and EBITDA grew by over 100%. During the partnership, Great Point Partners led a number of organic and inorganic initiatives which grew EBITDA at a compounded annual growth rate in excess of 12.5%, including driving operational improvements, tuck-in acquisitions and refinancing the debt. As a result, we created the largest intra-operative neuromonitoring company in the country at the time of the July 2016 sale to NuVasive.