Acquisitions and Investment (Tables)

12 Months Ended

Dec. 31, 2012

Scient'x [Member]

Purchase Price Consideration Based on Common Stock and Cash Consideration

Based on the closing price of Alphatec’s common stock of $6.39 on March 26, 2010, the fair value of the Replacement Options, and the amount payable in exchange for reduction in shares, the total purchase price was as follows (in thousands):

Fair value of Alphatec common stock issued upon closing	$	151,639
Fair value of Scient’x Replacement Options attributable to pre-combination service		1,040
Payable in exchange for reduction in shares to be paid in cash		1,618
Total purchase price	$	154,297

Allocation of Purchase Price and Estimated Useful Life of Assets Acquired

The following table summarizes the allocation of the purchase price (in thousands) for Scient’x and the estimated useful lives for the acquired intangible assets:

	Useful lives (in years)		Estimated Fair Value
Net tangible assets assumed			$	2,577
Acquired intangibles:
Core technology		10		3,632
Developed technology		8		9,552
In-process technology		Indefinite		1,749
Corporate trademarks		5		1,614
Key product trademarks		9		2,179
Customer-related intangible		15		16,009
Distribution network		10		1,614
Physician education programs		10		3,095
Goodwill				112,276
Total purchase price allocation			$	154,297

Unaudited Pro Forma Information Presents Consolidated Results of Operations

The following unaudited pro forma information presents the consolidated results of operations of the Company and Scient’x as if the acquisition had occurred on January 1, 2010 (in thousands, except share data):

	Year Ended December 31,
	2011			2010
Revenues	$	197,711		$	182,945
Operating loss		(23,466	)		(6,892	)
Net loss		(21,131	)		(8,785	)
Net loss per share, basic and diluted	$	(0.24	)	$	(0.10	)

Phygen, LLC [Member]

Purchase Price Consideration Based on Common Stock and Cash Consideration

Based on the closing price of Alphatec’s common stock of $1.69 on November 6, 2012, cash consideration and contingent liabilities, the total purchase price was as follows (in thousands):

Fair value of Alphatec common stock issued upon closing	$	8,856
Cash consideration paid and payable		5,900
Contingent consideration		3,666
Total purchase price	$	18,422

Allocation of Purchase Price and Estimated Useful Life of Assets Acquired

The following table summarizes the allocation of the preliminary purchase price (pending final valuation of intangible assets, deferred income taxes and inventory valuation) for Phygen and the estimated useful lives for the acquired intangible assets (in thousands):

	Useful lives (in years)		Estimated Fair Value
Net tangible assets assumed			$	1,936
Acquired intangibles:
Developed technology		3		170
Trademarks		3		57
Covenant not-to-compete		3		376
Customer-related intangible		12		3,467
Distribution network		12		2,292
Goodwill				10,124
Total purchase price allocation			$	18,422