Orthopaedic Synergy Inc., a Raynham, Mass.-based provider of products for the orthopaedic device market, has raised $4.8 million in Series A funding. Pioneer Capital Partners (New Zealand) led the round, and was joined by Birnie Capital Partners. The company was formed via the merger of OMNI life science, Inc. and Enztec Ltd., and hopes to close the round with a total of $6 million by March.
The Boards of Directors for OMNI life science, Inc. (“OMNI”) and Enztec, Ltd. (“Enztec”) are pleased to announce an initial close of US$4.8 million in the Series A financing, and the concomitant reorganization, of their companies into a holding company called Orthopaedic Synergy, Inc. (“OSI”).
Pioneer Capital Partners of Auckland, New Zealand, and its limited partners, have invested an initial US$4.8 million of OSI’s US$6 million Series A financing round. Birnie Capital Partners, also of Auckland, New Zealand, and investor in both OMNI and Enztec, is arranging and underwriting the balance of the Series A financing, which is due to close in March. OSI is the synergistic combination of two innovative companies that design, develop, and distribute products in the rapidly growing market for orthopaedic devices.
Both OMNI and Enztec are now wholly owned subsidiaries of OSI. It is the goal of OSI to continue to add other complementary businesses both in the United States and abroad under this umbrella holding company. The concept of utilizing an umbrella holding company was developed to ensure that the culture of each company would remain intact, as would its distinct corporate identity. The Board of Directors of OSI firmly believes that each company should continue to operate utilizing the same methods that led to their success and that the fusion of design and technology from each company will lead to accelerated innovation and growth. The management of each company remains intact as does their method of managing their operations.
According to Chairman Richard Nik Nikolaev, “Orthopaedics is a global business that is still dominated on the local level by local thought leaders, concepts, and needs. In the past, US orthopaedic companies acquired European and English companies in order to expand their global reach. Many acquisitions have not worked well because the acquiring company forced their corporate culture and products into the acquired entity. Often the founders and management teams terminated their relationship and became competitors again. “It is clear that the entrepreneurial spirit that started an organization needs to continue to be nurtured if that organization is to succeed. We will be looking to partner with innovative, fast growing companies that share our vision and would also like to have access to the resources a larger organization can offer, without losing their identity in the process.”
OMNI and Enztec both have a history of introducing successful design concepts in their area of expertise and, by combining their talents, better solutions for surgeons and better outcomes for patients will be produced. OSI’s role is to maximize the synergy benefits that will exist while at the same time ensuring that the overall strategic goals of the group are fulfilled. OMNI will be the primary resource for the design, development, testing and manufacturing of joint replacement implants for the group.
Enztec will be the primary resource for advanced instrument design and manufacturing, and will provide custom implant capability worldwide. Enztec, in conjunction with New Zealand surgeons and the OMNI implant design team, will also design and develop joint replacement products for the Australasian market. These products will also be manufactured by Enztec.
OSI has also established an Advanced Technology Group Think Tank that in additional to their ongoing responsibilities are charged with the concept of evaluating new technologies in materials and manufacturing that will create innovative new solutions to assist surgeons in their endeavour to improve their patient’s quality of life and, at the same time, make transformational changes to the company and the Orthopaedic Industry.
This team will consist of Dr. Ed Cheal PhD, Dr. Ian McMillan PhD, and Enztec co-founder Paul Morrison. OSI intends to seek a public listing once worldwide financial markets have stabilised and investor appetite returned for well-founded investments. A public listing will further enhance OSI’s ability to realise its vision by acquiring additional complementary orthopaedic businesses.
Orthopaedic Synergy, Inc. Board of Directors Orthopaedic Synergy, Inc. Management Richard (Nik) Nikolaev – Chairman of the Board Richard (Nik) Nikolaev – Chief Executive Officer Randal Barrett Bill Birnie Steve Norrie – Chief Financial Officer David Boyd George Cipolletti -ENDS- About OMNI life science Inc. OMNI is based in Raynham, Massachusetts, United States and designs and develops innovative joint replacement products that utilize modular concepts. These products allow the orthopaedic surgeon to re-establish normal joint kinematics in those patients undergoing surgery to replace diseased and damaged hips, knees, and shoulders. OMNI life science, Inc. products are used in the United States, Europe, Australia, and New Zealand. About Enztec Limited Enztec is based in Christchurch New Zealand, and designs, develops, and manufactures functional and innovative instrument systems used by surgeons for precise implantation of orthopaedic devices. In addition, the company is well known for its innovative solutions for custom implants used to solve specific skeletal and complex orthopaedic procedures. Enztec products are used throughout the world.