Surgalign’s big bet – the pivot from hardware to AI.

Surgalign reached a market cap of $180M in May 2019. They posted $117M in gross sales in 2019. Four years later, Xtant purchases their hardware assets for $5M, so they can focus on software.

Surgalign must find a way to survive with their new Holo AI Technology.

Holo has little sales so far, but represents a huge asset to Surgalign because its is the only FDA approved AI/AR spine technology in the world.  It’s early. It does not mean much yet, but “first mover advantage” can be huge in spine.

Ever if Surgalign cannot make a viable business with HOLO, acquirers will line up to purchase the HOLO tech and FDA clearances.

Will this pivot work ?

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Read also – Warning: the Ortho Tightening is Beginning.

Surgalign Enters Into Definitive Agreement to Sell Global Hardware and Biologics Business Through a Structured Sale Process Under Chapter 11 of the U.S. Bankruptcy Code (press release)

Surgalign Holdings, Inc., (NASDAQ: SRGA) (“Surgalign” or the “Company”) a global medical technology company focused on elevating the standard of care by driving the evolution of digital health, today announced that the Company has entered into an asset purchase agreement (the “Asset Purchase Agreement”) to sell substantially all of its U.S. hardware and biomaterials assets and the equity interests in non-Debtor entities related to the Debtors’ hardware business outside of the U.S. to Xtant Medical Holdings, Inc. (“Xtant”) for $5.0 million. The sale will be effectuated through the chapter 11 proceedings initiated by the Company and certain of its subsidiaries, who elected to file voluntary petitions under chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.

As part of the chapter 11 proceedings, the Company also filed a motion seeking authorization to pursue an auction and sale process under section 363 of the U.S. Bankruptcy Code pursuant to which Xtant will be designated as the stalking horse bidder. The proposed sale process also encompasses the Company’s other assets that are not the subject of the Asset Purchase Agreement.

The Company has filed a series of motions with the Bankruptcy Court seeking to ensure the continuation of normal operations during this process. The Company believes that it has sufficient liquidity to conduct its businesses in an uninterrupted manner and fund the chapter 11 proceedings, including the sale of its assets.

Additional information about this process and the proposed asset sale, as well as other documents related to the Chapter 11 proceedings, is available through the Company’s claims agent Kroll Restructuring Administration LLC (“Kroll”), at, or by calling the toll-free hotline at +1 (833) 939-6015 or for calls originating outside the U.S., by calling +1 (646) 440-4843. Inquiries can also be sent directly to Kroll at

White & Case LLP is serving as the Company’s legal counsel, Alvarez & Marsal Securities, LLC is serving as investment banker, and Alvarez & Marsal North America, LLC is serving as financial advisor to the Company. For more information about the sale process, interested parties should contact Alvarez & Marsal Securities, LLC.

About Surgalign Holdings, Inc.
Surgalign Holdings, Inc. is a global medical technology company committed to the promise of digital health to drive transformation across the surgical landscape. Uniquely aligned and resourced to advance the standard of care, the company is building technologies physicians and other health providers will look to for what is truly possible for their patients. Surgalign is focused on developing solutions that predictably deliver superior clinical and economic outcomes. Surgalign markets products throughout the United States and in approximately 40 countries worldwide through an expanding network of top independent distributors. Surgalign is headquartered in Deerfield, IL, with commercial, innovation and design centers in San Diego, CA, Warsaw and Poznan, Poland, and Wurmlingen, Germany. Learn more at and connect on LinkedIn and Twitter.

Forward Looking Statement