Surmodics to be Acquired by GTCR for $627 Million

Surmodics, Inc. (NASDAQ: SRDX) has recently announced a definitive agreement to be acquired by GTCR, a leading private equity firm. The acquisition will see affiliates of GTCR purchasing all outstanding shares of Surmodics at a per-share price of $43.00 in cash, amounting to a total equity valuation of approximately $627 million. This represents a significant 41.1% premium to Surmodics’ 30-trading day volume-weighted average closing price through May 28, 2024.

Gary Maharaj, President and CEO of Surmodics, expressed satisfaction with the transaction, emphasizing that it allows shareholders to realize immediate value creation with a substantial premium, reflecting the significant progress and achievements made by the company's employees.

The acquisition is expected to close in the second half of calendar year 2024, subject to customary closing conditions, including approval by Surmodics shareholders and required regulatory approval. Following the completion of the transaction, Surmodics will become a privately held company, and its common stock will no longer be listed on the NASDAQ stock exchange.

Additionally, it was revealed that Jefferies LLC served as the financial advisor to Surmodics, while Faegre Drinker Biddle & Reath LLP provided legal counsel. On the other hand, Kirkland & Ellis LLP and Cleary Gottlieb Steen & Hamilton LLP provided legal counsel, and Goldman Sachs & Co. LLC served as the financial advisor to GTCR.

The transaction is anticipated to further develop Surmodics’ standing in the healthcare industry, with Sean Cunningham, Managing Director and Head of Healthcare at GTCR, highlighting the company’s strong customer relationships and history of developing medical technologies that deliver enhanced performance and improved clinical outcomes.

In connection with the proposed transaction, Surmodics plans to file relevant materials with the Securities and Exchange Commission (SEC), including a proxy statement on Schedule 14A. These documents will contain important information about Surmodics and the proposed transaction, and investors are advised to carefully review them before making any voting decision.

As a result of these announcements, the company's shares have moved 19.9% on the market, and are now trading at a price of $42.09. For more information, read the company's full 8-K submission here.

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