LEESBURG, Va.--(BUSINESS WIRE)--June 27, 2006--K2M, Inc., the “Surgeon Driven Design” company developing next generation spine technologies, today announced that it has closed on a $21.5 million investment round led by Ferrer Freeman & Company and joined by BETA.
Founded in 2004, K2M has quickly established a solid business reputation and rapidly growing revenues based on a strong portfolio of more than 70 issued and pending patents. Proceeds from this financing will allow K2M to better support sales and marketing efforts, as well as further the development of next generation products which includes a new and revolutionary spinal stabilization system to be announced in the third quarter. This investment also will help to fuel the continued development and commercialization of an extensive portfolio of unique spine products including a ground-breaking approach to minimally invasive surgery and a new dynamic stabilization technology.
“This mezzanine round of growth capital comes at the appropriate time for K2M,” stated Eric Major, K2M’s President and CEO. “We have built a sustainable business and established ourselves in the marketplace; our products continue to find broadening acceptance among spine surgeons. This investment will play a vital role in our ability to scale our business to meet the growing worldwide demand for our products.”
“We were very impressed, and frankly pleasantly surprised, by the mature business structure of K2M created by K2M’s experienced management team. Their unique and energetic business model is generating a deep pipeline of innovative spine technologies,” said Keith Longson, Partner of Ferrer Freeman & Company, who will be joining K2M’s board of directors. “We believe we have invested in a solid growth company which already has a substantial product and patent portfolio, two years of audited financials from an international audit firm, an established bank relationship with Silicon Valley Bank, a fully implemented JD Edwards/Oracle ERP System, and a rapidly expanding customer base.”
“This financing is a positive endorsement of K2M’s development as a company, and we welcome Ferrer Freeman & Company as a participant to our team,” said Mr. Major.
K2M was advised by Piper Jaffray, a leading independent securities and financial advisory firm with extensive experience in the spine market.
About K2M
K2M is a provider of high quality innovative spine technologies based around its “Surgeon Driven Design” philosophy - resulting in better products with shorter time to market. Chief Medical Officer, Chairman, and co-founder, Dr. John Kostuik former Chief of Spine Surgery at Johns Hopkins Medical Center, drives K2M’s commitment to the research and development of technologies that are redefining the market. K2M’s industry expertise and values derive from an unprecedented Board of Scientific Advisors consisting of an impressive team of spine industry leaders. K2M’s comprehensive line of patented products includes; stabilization, minimally invasive systems, motion preservation innovations and other advanced breakthroughs in surgical spine solutions. Additional information is available online at www.K2M.com.
About the Investors
Ferrer Freeman & Company is a private equity firm located in Greenwich, CT that invests exclusively in healthcare and healthcare-related companies. Ferrer Freeman & Company has over $900 million under management, and has decades of experience investing in, advising, acquiring and selling healthcare companies. More information is available online at www.ffandco.com.
BETA is a diversified investment firm focused primarily on the healthcare industry and founded by Mitchell Blutt, MD. The firm, located in New York City, invests in both the public and private equity markets.
Piper Jaffray & Company is the chief operating subsidiary of Piper Jaffray Companies (NYSE: PJC - News), a focused securities firm dedicated to delivering superior financial advice, investment products and transaction execution within selected sectors of the financial services marketplace. The company currently operates through two primary revenue-generating segments: Capital Markets and Private Client Services. Since 1895. Member SIPC and NYSE. More information is available online at www.piperjaffray.com.
Contact: Media Contacts: D. Larkin for K2M Kim Larkin, 703-250-3590, x3406 klarkin@dlarkin.com or Ferrer Freeman & Company 203-532-8011 or Piper Jaffray Susan Beatty, 612-303-5680 susan.l.beatty@pjc.com
Source: K2M, Inc.
