Private Equity Firm Set to Acquire Surmodics for $627M

GTCR, a private equity firm, is acquiring Surmodics for $627 million. Eden Prairie, MN-based Surmodics is a developer of devices and in vitro diagnostics. The deal continues to show M&A on the upswing in medtech.

Under the terms of the agreement, affiliates of GTCR will acquire all outstanding shares of Surmodics. Surmodics shareholders will receive $43 per share in cash.  The transaction is expected to close in the second half of 2024.

The per-share acquisition price represents a 41.1% premium to Surmodics’ 30-trading day volume-weighted average closing price through May 28, 2024. Surmodics’ Board of Directors has unanimously approved the transaction and resolved to recommend that stockholders vote in favor of the transaction.

“With its longstanding, blue chip customer relationships and a rich history of developing medical technologies that deliver enhanced performance and improved clinical outcomes, Surmodics is well-positioned for attractive, long-term growth and value creation,” said Sean Cunningham, Managing Director and Head of Healthcare at GTCR. “We look forward to partnering with the Surmodics team to continue to expand the company’s offering and broaden its reach.”

Surmodics had a tremendous rebound in 2023. The company won a nod from FDA for the SurVeil drug-coated balloon after the agency previously said the device wasn’t approval.

Related:Top Medical Device M&A

The company’s device is designed to treat peripheral artery disease (PAD). The device includes a proprietary drug-excipient formulation using a special process to improve coating uniformity. 

Surmodics dabbled into M&A back in 2021. The company acquired Vetex Medical Limited to build upon its thrombectomy portfolio. Galway, Ireland-based Vetex developed the ReVene mechanical thrombectomy catheter, which is specifically designed to remove large, mixed-morphology blood clots commonly found with venous thromboembolism