TranS1 Inc. (Nasdaq: TSON) is set to buy Baxano Inc., a developer of minimally-invasive spinal devices, for about $23.6 million.

The deal, announced late March 4, includes $550,000 in cash, plus refinancing roughly $3 million of Baxano debt.

Baxano, based in Mountain View, Calif., had raised over $58 million in venture capital funding from CMEA Capital, Kaiser Permanente Ventures, Affinity Capital Management, Prospect Venture Partners, Three Arch Partners and Kearny Venture Partners.

TranS1 is a medical device company that designs products to treat degenerative conditions of the spine. Once the merger is completed, the headquarters for the combined company will be in Raleigh, N.C. TranS1 is currently based in Wilmington, N.C.

TranS1 hired Stifel Financial Corp. and Smith Anderson Blount Dorsett Mitchell & Jernigan LLP for financial and legal advice, respectively. Leerink Swann ran the sale process for Baxano while Morrison & Foerster LLP handled legal matters.

Manufacturing industry