Merit Medical Systems, Inc. has announced the signing of a definitive asset purchase agreement with Pentax of America, Inc. to acquire the C2 Cryoballoon device and related technology. The proposed acquisition is expected to strengthen Merit's position in the gastroenterology market and provide opportunities to treat more patients suffering from chronic gastroesophageal reflux disease (GERD) and other gastrointestinal tissue disorders.
Financially, the total purchase consideration for the C2 Cryoballoon assets is $22 million, consisting of a $19 million cash payment at closing and potential contingent payments of up to $3 million payable upon meeting certain milestones. The acquired assets are projected to contribute revenue of approximately $1 million from the projected closing date of November 1, 2025, through December 31, 2025.
The acquisition is projected to add approximately $6 million to $8 million of revenue in 2026, and is expected to be dilutive to Merit's non-GAAP net income and non-GAAP earnings per share by approximately $1 million to $2 million, or $0.02 * $0.03 per share, respectively. It is also projected to be dilutive to Merit's GAAP net income and GAAP earnings per share by approximately $2 million to $3 million, or $0.03 * $0.05 per share, respectively.
The proposed transaction is expected to occur during the fourth quarter of 2025, subject to the receipt or waiver of certain customary closing conditions. Merit intends to integrate the C2 Cryoballoon business into its endoscopy portfolio and transfer product manufacturing to its facility in South Jordan, Utah.
This acquisition is a strategic move by Merit to expand its endoscopy portfolio and empower physicians to improve patient outcomes worldwide. Following these announcements, the company's shares moved 0.42%, and are now trading at a price of $80.81. If you want to know more, read the company's complete 8-K report here.
