Surmodics, Inc. announced on May 29 that it has entered into a definitive agreement to be acquired by GTCR, a leading private equity firm with a long track record of investment expertise across healthcare and healthcare technology.
Under the terms of the agreement, affiliates of GTCR will acquire all outstanding shares of Surmodics. Surmodics shareholders will receive $43.00 per share in cash, for a total equity valuation of approximately $627 million.
Surmodics is an Eden Prairie, Minnesota-based provider of performance coating technologies for intravascular medical devices and chemical and biological components for in vitro diagnostic immunoassay tests and microarrays. Surmodics also develops and commercializes highly differentiated vascular intervention medical devices. According to its most recent financial report, Surmodics’ revenue during FY 2023 was $132.6 million, and EBITDA was $14.5 million.
Founded in 1980, GTCR has invested more than $25 billion in more than 270 companies, and the firm currently manages more than $35 billion in equity capital. The company is headquartered in Chicago, Illinois.
The transaction is expected to close in the second half of calendar year 2024. It will be financed through a combination of committed equity from funds affiliated with GTCR and committed debt financing. Upon completion of the transaction, Surmodics will be a privately held company and its common stock will no longer be listed on the NASDAQ.
Jefferies LLC served as financial advisor to Surmodics and Faegre Drinker Biddle & Reath LLP provided legal counsel. Kirkland & Ellis LLP and Cleary Gottlieb Steen & Hamilton LLP provided legal counsel and Goldman Sachs & Co. LLC served as financial advisor to GTCR.
According to data captured in the LevinPro HC database, this acquisition marks the 38th Medical Devices transaction of 2024. This is a notable decrease from 2023, when there were 49 Medical Devices deals announced between January 1, 2023, and May 29, 2023. This also marks GTCR’s first acquisition of the year, and its fifth acquisition since March 2022.
