Back to top

Analyst Blog

ArthroCare Corporation , a maker of less invasive surgical products, recently revealed that it has concluded the acquisition of ENTrigue Surgical, Inc. in a cash transaction.

The purchase price, based on the merger agreement, was $45 million subject to working capital modifications as well as adjustment for an escrow amount. The former stockholders of ENTrigue will be eligible to receive contingent amounts for the next five years. ENTrigue was a closely held corporation.

Piper Jaffray & Co. was the financial advisor for ArthroCare and DLA Piper was its legal advisor. J.P. Morgan Securities LLC functioned as financial advisor while Norton Rose Fulbright acted as legal advisor to ENTrigue.

ENTrigue brings to market novel instruments and implants for surgery including balloon dilation. Following the acquisition, it will function as a part of ArthroCare’s ENT expertise. ENTrigue will provide traction to Rapid Rhino and ArthroCare Coblation offerings required in surgery for sinusitis, which are utilized by ENT surgeons globally.

It is estimated that over 30 million people in the U.S. are afflicted by sinusitis. The condition is marked by infection and inflammation of the sinuses. About half a million patients of sinusitis receive surgical treatment in the U.S. every year.

ArthroCare produces implants and devices which improve surgical procedures and enhance outcomes. Its offerings permit less invasive operations. Certain ArthroCare offerings utilize its globally patented Coblation expertise.

Furthermore, ArthroCare is bringing to market instruments that use its patented Opus expertise. ArthroCare’s strategy is to derive synergies by providing a complete set of surgical items, which will permit it to tap a large market.

The stock carries a Zacks Rank #4 (Sell). We are more optimistic about The Cooper Companies Inc. (COO - Analyst Report), Align Technology Inc. (ALGN - Analyst Report) and CONMED Corporation (CNMD - Analyst Report) each of which carries a Zacks Rank #2 (Buy) and are expected to do well.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%