Surgalign's bankruptcy advances with sales

DEERFIELD - Chicago-based Augmedics said Monday it has been named the successful bidder for the digital health assets of Surgalign and Holo Surgical following a bankruptcy auction process. Deerfield-based Surgalign also selected Xtant Medical Holdings Inc. as the successful bidder for its hardware and biologics assets.

The sale and marketing process, including the auction, was conducted in accordance with bidding procedures approved by the United States Bankruptcy Court, Surgalign said.

Montana-based Xtant's bid for the hardware and biologics assets consists of a cash purchase price of $5 million and the assumption of certain liabilities. In addition, Augmedics's bid for the digital health assets consists of a cash purchase price of $900,000 and the assumption of certain liabilities.

Both of the successful bids maximize the value and minimize the remaining duration of Surgalign's chapter 11 bankruptcy proceedings by providing a clear path forward for the company to consummate a chapter 11 plan and return value to its stakeholders, Surgalign said.

"We are pleased to have concluded the sale process and believe with Xtant and Augmedics, our technology and its potential will live on," said Terry Rich, president and chief executive officer of Surgalign. "I cannot thank our customers and partners enough for their support through this process."

The news comes a month following Augmedics' raising of $82.5 million in investment income to accelerate the adoption of augmented reality spine surgery and further strengthens the company's AR and AI portfolio with intellectual property and other digital health assets, Augmedics said in a news release.