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Surmodics (SRDX) Enters Deal to be Acquired by GTCR for $627M

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Surmodics, Inc. (SRDX - Free Report) announced that it entered a definitive agreement to be acquired by GTCR, a renowned private equity company with extensive experience making investments in the healthcare and technology sectors.

GTCR has its sights on making investments in businesses across several sectors, such as technology and healthcare. It has made more than $25 billion in investments in above 280 firms to date. At the moment, it also oversees $40 billion in equity capital.

Price Performance

In the past year, SRDX shares have rallied 130.9% compared with the industry’s rise of 2.3%. The S&P 500 has grown 24% in the same time frame.


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GTCR is likely to be an ideal partner for Surmodics, given its extensive history and deep domain expertise in the healthcare sector, and this transaction will undoubtedly position the company to continue delivering compelling benefits for physicians, patients and customers, going forward.

Per the terms of the agreement, affiliates of GTCR are likely to acquire all outstanding shares of Surmodics. Cash payments of $43 per share are likely to be made to Surmodics stockholders, resulting in an estimated $627 million in total equity valuation.

The acquisition price per share is 41.1% higher than the volume-weighted average closing price of Surmodics over 30 trading days as of May 28, 2024. Surmodics’ board of directors has unanimously approved the transaction and resolved to recommend that stockholders vote in favor of the transaction.

The transaction is likely to conclude in the second half of 2024, subject to customary closing conditions, including approval by Surmodics shareholders and required regulatory approval. It is to be financed through a combination of committed equity from funds affiliated with GTCR and committed debt financing. Surmodics will be a privately held firm after the deal closes, and its common stock will no longer be listed on the Nasdaq Stock Exchange.

Zacks Rank & Stocks to Consider

SRDX carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , Ecolab (ECL - Free Report) and Boston Scientific Corporation (BSX - Free Report) .

Align Technology, currently carrying a Zacks Rank of 2 (Buy), reported first-quarter 2024 adjusted earnings per share (EPS) of $2.14, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.

Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in the trailing four quarters, the average surprise being 1.7%.

Ecolab’s shares have rallied 33.8% against the industry’s 9.3% decline in the past year.

Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 7.5%.

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