Merger Positions Merit Medical Systems for Growth

By Hao Liu • Wednesday, May 21 06:01 • Permanent Link

Merit Medical Systems, Inc. (NASDAQ: MMSI) has announced the acquisition of Biolife Delaware, L.L.C., a company that produces hemostatic devices under the brand names StatSeal and WoundSeal. The acquisition, which was completed through a merger transaction, positions Merit to offer clinicians a wider range of products aimed at standardizing, simplifying, and minimizing post-procedure care and maintenance.

The aggregate transaction consideration, which included cash and assumption of Biolife liabilities, amounted to approximately $120 million. This strategic move is expected to add around $18 million in annualized revenue beginning in fiscal year 2026, with mid-teens growth and a favorable non-GAAP margin and profitability profile.

This acquisition is intended to enhance Merit's hemostasis portfolio, providing healthcare partners with an additional effective solution that complements a wide range of percutaneous procedures, such as interventional radiology and cardiology, dialysis, electrophysiology, biopsy, and drainage.

Fred P. Lampropoulos, Chairman and CEO of Merit, expressed enthusiasm about the acquisition, emphasizing the potential for the StatSeal and WoundSeal products to address a global market opportunity estimated at $350 million. He also highlighted the clinical validation of these products and the anticipated benefits for patients and healthcare providers worldwide.

As a result of the acquisition, Merit has updated its full-year 2025 financial guidance, factoring in the projected impact from the merger effective date of May 20, 2025, to December 31, 2025. The company reaffirmed its updated full-year 2025 financial guidance previously issued on April 24, 2025.

While the transaction is expected to have a slightly dilutive effect on full-year 2025 non-GAAP profitability due to the partial-year contribution, Merit believes that the financial profile of the acquisition is attractive and aligns with the company's objectives of delivering sustainable, constant currency growth, improving profitability, and generating strong free cash flow.

Specific metrics such as non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin, non-GAAP operating margin, and constant currency revenue are key areas for investors to watch as the impact of the acquisition unfolds. The company plans to provide further details on the acquisition during its second quarter earnings report on July 30, 2025. Following these announcements, the company's shares moved 0.75%, and are now trading at a price of $98.84. For the full picture, make sure to review MERIT MEDICAL SYSTEMS INC's 8-K report.

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