Surmodics (Nasdaq:SRDX) announced today that it agreed to be acquired by GTCR, a private equity firm with healthcare interests.
Eden Prairie, Minnesota-based Surmodics develops a range of technologies, including drug-coated balloons and thrombectomy systems. Its SurVeil DCB received a long-awaited FDA approval in June 2023. The company also reported successful early clinical use of its Pounce LP thrombectomy system at the start of this year.
Under the terms of the agreement, GTCR affiliates intend to acquire all outstanding shares of Surmodics. The deal provides $43 per share in cash to Surmodics shareholders, reaching a total equity valuation of approximately $627 million.
According to a news release, the per-share acquisition price represents a 41.1% premium to Surmodics’ 30-day average closing price through May 28. The company’s board unanimously approved the transaction and recommended that stockholders vote in favor.
Surmodics and GTCR expect the transaction to close in the second half of this calendar year. GTCR plans to fund the deal through a combination of equity from its affiliated funds and committed debt financing. Upon completion, Surmodics will become a privately held company and its stock will be removed from the Nasdaq exchange.
“We are pleased to announce this transaction, which enables Surmodics shareholders to realize immediate value creation with a substantial premium, reflecting the significant progress and important achievements made by our employees,” said Gary Maharaj, Surmodics president and CEO. “GTCR is an ideal partner for Surmodics, given its extensive history and deep domain expertise in the Healthcare sector, and I am confident that this transaction will position the company to continue to deliver compelling benefits for physicians, patients and customers going forward.”
Surmodics acquisition marks latest private equity play in medtech
With this deal, private equity firms continue to play a role on the medtech mergers and acquisitions scene. Medtech companies, including Medtronic and Baxter, previously looked to private equity for spinoff and separation opportunities. Firms also make significant investments, like one in Medline years ago.
GTCR focuses on investing in companies in a number of industries, including healthcare and technologies. To date, its investments top $25 billion in more than 280 companies. It also currently manages $40 billion in equity capital.
The firm’s Managing Director and Head of Healthcare, Sean Cunningham, said GTCR believes Surmodics is “well-positioned for attractive, long-term growth and value creation.”
“We look forward to partnering with the Surmodics team to continue to expand the company’s offering and broaden its reach,” he said.