Globus Medical, Inc. (NYSE:GMED) Q4 2022 Earnings Call Transcript

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And then our Enabling Technology, along with the Pulse system can really become a powerful tool, and I think everybody can see that. And then, of course, we’re always looking at what near term, yet future innovation can be to significantly tie these together through that ecosystem. When we offer that up with people, it’s a tough thing to compete against and a rep that is long-term focused and wise can recognize that within 12 months, they’re going to have at their fingertips the most powerful offering in the industry.

Steve Lichtman: Got it. Thanks, Dan.

Operator: Thank you. Our next question comes from the line of Matthew O’Brien of Piper Sandler. Please go ahead, Matthew.

Matthew O’Brien: Hey, I kind of broke up, you say Matthew O’Brien?

Dan Scavilla: He did.

Matthew O’Brien: Okay. Fantastic. Thanks for taking my questions. So I guess, Dan, can you or Keith actually just talked about the timing of the NuVa vote from the shareholders. And then it is a take under at this point. It’s about 5% lower stock prices versus where it was traded before the announcement. So how are you going to talk those investors into voting for this transaction between you and Chris? And are you so committed to this deal that you would offer up a sweetener, be it more stock or even cash, if need be, to make sure this gets done? And I do have one more follow-up.

Dan Scavilla: Thanks, Matt. So a lot of questions there. I would tell you that we’re not going to be in a position yet to comment on what it is we’re going to do. Certainly, we’re going to talk to investors show them why this deal makes sense, show them the math to get them lined up with this and understand that this is a long-term gain that will create a significant acceleration versus if we stay as stand-alone. So I think it’s probably the biggest thing with it. But to talk about any other steps at this point would be premature. So I’ll refrain from that.

Matthew O’Brien: Okay. But Dan, the — when we hear middle of the year closing, you think, all right, June 30, so the vote would be sometime before then. I mean, is the next few months where we could see the vote?

Dan Scavilla: Sorry, I did leave that off. I wasn’t avoiding that with that. Really, what we need to do right now is create the joint proxy first and then get the vote. We’re in the process of compiling that, as I said in my statements, look, I don’t have an exact date where we’ll say that’s done, but it’s obviously the priority right now is to get the HSR filing in, get that working, get to joint proxy going so we can get this in motion.

Matthew O’Brien: Okay. And then the follow-up, Dan, is again more of a strategic question because I think part of the reaction in the stock was kind of the adjustment to the strategic direction of the business that I think most were anticipating, because you are kind of more diversifying away from spine now you are doubling down more. Is this part of a bigger push for the company longer term, double down on spine, get big there, get a lot of cash flow and then invest in other areas of Ortho to become a much bigger entity in this space? Thanks.

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