Plymouth-based Entellus Medical, maker of products for minimally invasive facial and throat procedures, ratcheted up its financial guidance for the year after announcing plans to acquire a fast-growing private company that makes a new device for nasal-obstruction treatments.
Entellus has announced a definitive agreement to acquire California-based Spirox Inc. in a cash-and-stock deal that includes $25 million up front and 3.4 million shares of Entellus common stock, valued at $56.5 million based on Monday's closing price, plus future performance payments.
The deal is expected to close later this summer, pending approval from shareholders and regulators.
Entellus, which was the only Minnesota company to complete an initial public offering of stock in 2015, closed at $16.61 Monday, up 4.5 percent.
If the deal to acquire Spirox goes through as expected, Entellus is projecting 2017 full-year revenue of as much as $95 million this year, which would be growth of about 26 percent. Before the deal was announced, Entellus was guiding to revenue growth of up to 18 percent this year.
Spirox is the owner of a fast-growing technology called the Latera Absorbable Nasal Implant, which was launched commercially last July following regulatory clearance from the U.S. Food and Drug Administration.
The Latera is an absorbable polymer implant implanted by an otolaryngologist or a plastic surgeon to support the upper and lower nasal cartilage in a patient with a nasal airway obstruction.
A joint news release from the companies Friday estimated that about 1 million people in a year in the U.S. get a surgical treatment for nasal obstructions, and 70 percent of them could benefit from a lateral wall intervention using a Latera implant.
![Gas was $2.39 at the BP gas station ay 46th Street at Lyndale in South Minneapolis. ] GLEN STUBBE * gstubbe@startribune.com Friday September 4, 2015 Pre-Labor Day gas prices in the U.S. are the lowest in 11 years, and under $2 per gallon in many states, though Minnesota's average is nearly 40 cents higher. Just one station, in Brainerd, was selling at $1.99. Checking on whether that is a promotion. Costco and Sams Clubs, usually the low price leaders, were 15 cents more. With some motorists' tho](https://arc.stimg.co/startribunemedia/4U372WPXFGGQGQHPL2CTC4SFUY.jpg?&w=252&ar=3:2&fit=crop)