CONMED Corporation (NASDAQ: CNMD), a medtech company known for its minimally invasive medical instruments and systems used in othorpedics and general surgery, announced its acquisition of privately held SurgiQuest, Inc., for $265 million on November 16. Just a few weeks earlier, CONMED CEO Curt Hartman acknowledged that CNMD third quarter earnings were weaker than expected in export markets and general surgery. That may be remedied with SurgiQuest’s AirSeal® System, the first integrated access management technology for use in laparoscopic and robotic procedures. Published clinical data demonstrates that AirSeal leads to shorter procedure times and reduced post-operative pain.
CONMED does not expect the acquisition to have a material impact on fiscal year 2015 operating results, but in fiscal year 2016, the deal is expected to add $55 to $60 million to its revenue. Further, CONMED projects net cost savings will approximate $15 million per year.
