Axogen has struck a deal to buy BioCircuit Technologies, the privately held maker of the NerveTape device for sutureless nerve repair, for $200 million in cash.

Axogen on Thursday said it will fund the acquisition with proceeds from a public offering of 4.91 million shares at $42.50 apiece, which the Alachua, Fla., company expects will generate gross proceeds of roughly $208.7 million.

The offering was priced 10% below Wednesday's closing price of $47.27, and shares of Axogen were recently down 4.9% to $44.95 in premarket trading.

Axogen said it expects the addition of NerveTape to its direct sales force, existing surgeon relationships and hospital contracting infrastructure will accelerate adoption of the product and drive deeper penetration within its focus markets of peripheral nerve regeneration and repair.

The deal is slated to close by the end of the year.