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Addison-based medical device manufacturer CTL Medical will see its revenue rise by approximately 50 percent after the acquisition of a competitor's key segment.
And it started with Danny Chon — CTL Medical's president and chief executive officer — making a cold call.
"LinkedIn and a cold call," said Chon, chuckling when asked about how talks between his company and Amedica began. "If you want something you've got to go after it. No one's going to give it to you."
After the deal with Amedica Corp. (NASDAQ: AMDA) closes, CTL Medical will rebrand as CTL Amedica. Chon said he's been monitoring Amedica for about five years because he was impressed with their product, a spinal implant device made with an advanced material not commonly used called silicon nitride.
CTL develops and produces surgical devices for neuro and spinal surgery in its Addison location. In this deal, CTL is acquiring Amedica's commercial spine business for up to $10 million. Chon said with the deal, he estimates CTL to earn approximately $35 million in revenue next year and $50 million in 2020. Despite being publicly traded, Salt Lake City-based Amedica was the smaller of the two as it did $11.2 million in revenue last year.
Chon said CTL didn't acquire the entire Amedica company because that would either mean CTL would become publicly traded or it would have to take Amedica private, a step he didn't think his company was ready for.
As part of the deal, Amedica's products will transfer to CTL while the manufacturing, R&D, and all intellectual property related to the silicon nitride technology will remain with Amedica in Salt Lake City.
"CTL Medical is best positioned to profitably leverage these advantages in the retail spine market," said Sonny Bal, Amedica's chairman.
"We will be the disrupter," Chon added. "We will be the only company to apply this science to all their products. I just don't think there's any other company in this industry that has created this much excitement in a very long time."
