OrthoLogic

Divestiture of the firm's continuous passive motion (CPM) orthopedic rehabilitation device business to OrthoRehab, Inc., is outlined in a definitive agreement announced May 9. Terms of the deal are not being disclosed, but OrthoLogic expects total consideration of $15-18 mil. Plans to seek a buyer for the business were first announced in January (1"The Gray Sheet" Jan. 29, 2001, p. 14). OrthoLogic plans to refocus on devices for fracture healing and spinal repair. A loss of $3-5 mil. will be recorded on the sale of the business assets upon closing, expected in June, and an additional one-time charge of $7-10 mil. will cover other costs associated with the divestiture