EDEN PRAIRIE, Minn. - Surmodics, Inc. (NASDAQ:SRDX), a significant player in medical device technologies, has reached a definitive agreement to be acquired by private equity firm GTCR in a deal valued at approximately $627 million. Surmodics shareholders are set to receive $43.00 per share in cash, a 41.1% premium over the company's recent average stock price.
The transaction, unanimously approved by Surmodics' Board of Directors, is anticipated to close in the latter half of 2024, pending customary closing conditions, including shareholder and regulatory approvals. The acquisition is to be financed through a mix of equity from GTCR-affiliated funds and committed debt financing.
Surmodics CEO Gary Maharaj expressed confidence in the deal, citing GTCR's healthcare sector expertise and the immediate value creation for shareholders. Sean Cunningham, GTCR's Head of Healthcare, commended Surmodics' history of medical technology development and envisaged continued growth and value creation for the company.
Upon completion, Surmodics will transition to a privately held entity, and its common stock will be delisted from The Nasdaq Stock Exchange. Additional details will be disclosed in forthcoming SEC filings, including a proxy statement that will be mailed to shareholders for voting on the proposed transaction.
Jefferies LLC and Faegre Drinker Biddle & Reath LLP acted as advisors to Surmodics, while Kirkland & Ellis LLP, Cleary Gottlieb Steen & Hamilton LLP, and Goldman Sachs (NYSE:GS) & Co. LLC advised GTCR.
This news is based on a press release statement.
InvestingPro Insights
As Surmodics, Inc. (NASDAQ:SRDX) prepares for its acquisition by GTCR, investors and shareholders are evaluating the financial health and future prospects of the company. According to InvestingPro, Surmodics is currently trading at a high earnings multiple with a P/E ratio of 43.94, which suggests a strong market confidence in its earnings potential. However, the adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly lower at 38.68, indicating a more favorable valuation in the near term.
InvestingPro data also reveals robust revenue growth for Surmodics. The company has achieved a significant 38.84% growth in revenue over the last twelve months as of Q2 2024, with a quarterly revenue growth of 17.5% in Q2 2024. This growth is complemented by an impressive gross profit margin of 83.85%, reflecting the company's efficiency in managing its production costs and maintaining profitability.
One of the InvestingPro Tips highlights that Surmodics has a strong return over the last year, with a 98.64% price total return as of a recent date in 2024. This performance is indicative of the company's robust market position and investor confidence. Furthermore, the company's liquid assets exceed short-term obligations, which is a reassuring sign for stakeholders considering the company's financial resilience and ability to meet its immediate liabilities.
For investors interested in more in-depth analysis, there are additional InvestingPro Tips available that provide a comprehensive look at Surmodics' financial health and investment potential. With the special coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of insights that can guide investment decisions.
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