Exactech, Inc. recently announced the successful completion of the merger agreement with TPG Capital. Per the deal, TPG has acquired all issued and outstanding common stock of Exactech. Upon closing of the transaction, Exactech’s shareholders will receive $49.25 in cash for each share they hold. The total transaction is valued at approximately $737 billion.
Following the deal, this orthopaedic implant device maker will now become a private company, headquartered in Gainesville, FL. This implies that the company’s common stock will stop trading on the Nasdaq, immediately before the market opens on Feb 15.
The deal was initiated in October 2017 for a value $625 million or $42 per share, representing a premium of roughly 31% over Exactech’s closing stock price on Oct 20, 2017.
However, last December, the company finalized an amendment to the merger agreement, under which Exactech agreed to exchange a portion of its shares in a transaction, representing approximately 18.8% of the company’s outstanding common stock.
Exactech’s board approved the amended merger agreement with TPG and recommended the company’s shareholders to approve the merger agreement and the merger with TPG.
Approximately, 94.5% of shareholders had cast their votes in favor of the merger, representing 73.7% of Exactech’s outstanding common stock, just a day before the deal was closed.
TPG is a leading global alternative asset company with more than $73 billion of assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, etc. The company’s investment platforms span across a wide range of asset categories like private equity, growth venture, real estate, credit and public equity. Over the past 10 years, TPG has invested more than $8 billion in healthcare.
A Strategic Move for Exactech
Per Exactech’s management, apart from providing maximum value to shareholders, this agreement will offer them an opportunity to gain from the company’s strong growth prospects.
Per the Mass Device and Business Report, the TPG Capital merger is a strong vote of confidence in the leadership of Exactech’s CEO and the company’s highly-efficient management team. The alliance with Exactech will enable TPG to invest in growth so as to compete with larger competitors in the orthopedic industry.
Shares Shine Bright
Over the last year, Exactech has outperformed the broader industry in terms of price. The stock has returned 97%, above the industry’s return of 23.4%, over the same time frame.
Zacks Rank & Stocks Worth a Look
Exactech carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Centene Corp (CNC - Free Report) , ATHENAHEALTH INC and Bioverativ Inc. . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Centene has an impressive projected long-term growth rate of 14.6%. The stock has returned 23.2% in the last six months.
ATHENAHEALTH has an expected long-term growth rate of 23.1%. The stock has gained 7.3% in the last three months.
Bioverativ has an expected long-term growth rate of 14%. The stock has gained 87.2% in the last three months.
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