Merit Medical Systems, Inc. has announced a definitive asset purchase agreement to acquire Cook Medical's lead management portfolio for a total cash consideration of approximately $210 million. This acquisition is expected to add approximately $40 million of revenue on an annualized basis beginning in fiscal year 2025.
Cook Medical's lead management business, which has 34 years of operating history, is projected to contribute revenue in the range of $4 to $6 million from the projected closing date of October 31, 2024, through December 31, 2024. This acquisition is expected to be modestly dilutive to Merit's full-year 2024 non-GAAP profitability but is projected to be accretive to non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, and non-GAAP earnings per share in the first and second full years post-close.
Merit has updated its full-year 2024 financial guidance to include the projected impacts of the acquisition of Cook Medical's lead management business. The updated guidance for the year ending December 31, 2024, reflects an expected net sales range of $1.339 billion to $1.351 billion, representing a 6.5% to 7.5% increase from the prior year. Additionally, the updated guidance for non-GAAP earnings per share is in the range of $3.25 to $3.34, reflecting a 14% to 17% increase from the prior year.
The company has reaffirmed its prior full-year 2024 financial guidance previously announced on August 1, 2024. Merit's financial guidance is subject to risks and uncertainties, as identified in the release and the company's filings with the U.S. Securities and Exchange Commission.
These figures demonstrate the potential impact of the acquisition on Merit's financial performance and its strategic positioning within the global cardiac intervention market. Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $98.71. Check out the company's full 8-K submission here.
