Ottobock files application to U.S. Federal Trade Commission to resolve future of Freedom Innovations
Resolution includes sale of Freedom Innovations assets to Proteor
Ottobock, a medical technology company which operates internationally, has reached an agreement with the French orthopaedic technology specialist Proteor SAS on the sale of significant assets of Freedom Innovations. The corresponding contracts were signed at the end of September.
With this transaction, Ottobock would satisfy the Order from the U.S. Federal Trade Commission (FTC) to divest certain assets from the U.S. company Freedom Innovations. As background: Ottobock acquired Freedom Innovations in September 2017 with the goal of strengthening the prosthetic product choices and technology for the benefit of amputees and consumers. The FTC filed a complaint against the acquisition and prohibited the integration of Freedom Innovations by Ottobock.
"We have had a very constructive dialogue with the FTC in recent months and are pleased to be able to present a solution now, " says Philipp Schulte-Noelle, CEO of Ottobock. "For all parties involved and especially for the employees of Freedom Innovations, the proposed transaction is good news after several years of uncertainty.”
The proposed transaction would allow Ottobock to strengthen its product portfolio in the field of prosthetic feet as it will retain certain Freedom Innovations foot products. Specifically, the proposed transaction contemplates Ottobock retaining the Kintrol K2 hydraulic ankle prosthesis, the Maverick fiberglass product family and other carbon feet that will expand Ottobock’s product range. Proteor is contemplated to acquire the microprocessor-controlled leg prostheses, certain foot prostheses and other infrastructure from Freedom Innovations.
Ottobock today filed its application with the FTC to approve the terms of the transaction, commencing a 30-day public comment period. Subsequently, the FTC Commissioners, as the highest governing body of the agency, will decide on final approval of the proposed transaction after the public comment period. Ottobock expects to close the proposed transaction by the end of 2020.