Merit Medical Systems has agreed to acquire medical device company EndoGastric Solutions, for a cash consideration of around $105m.
This acquisition includes EndoGastric’s EsophyX Z+ device, a non-pharmacological treatment for gastroesophageal reflux disease (GERD).
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The device is designed to offer a minimally invasive solution to alleviate GERD symptoms by restoring the natural reflux barrier of the body.
A procedure, known as transoral incisionless fundoplication (TIF 2.0), is performed under endoscopic visualisation and is designed to reduce acid reflux that may lead to long-term health issues.
Additionally, TIF 2.0 can be paired with a surgical hiatal hernia repair in a combined procedure called concomitant transoral incisionless fundoplication (cTIF).
Merit chairman and CEO Fred Lampropoulos said: “This acquisition is consistent with our Continued Growth Initiatives. It enhances our product portfolio in existing clinical specialities while expanding our global footprint in the multi-billion-dollar gastrointestinal market.
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By GlobalData“We look forward to helping more patients by providing clinicians with a sustained and minimally invasive treatment option for chronic GERD.”
Merit Medical said the assets acquired from EndoGastric Solutions reported revenues of approximately $26m for the 12-month period that ended on 31 December 2023.
Post-acquisition, these assets are projected to contribute revenues in the range of $13m to $15m from the closing date through 31 December 2024.
Lampropoulos added: “In addition to the strong strategic rationale, we believe the financial profile of this acquisition is compelling. While modestly dilutive to our full-year 2024 non-GAAP profitability given the partial-year contribution, we expect the acquisition to be accretive to our non-GAAP gross and operating margins, non-GAAP net income and non-GAAP EPS in the first full year post-closing.
Last month, Medtronic and Merit Medical Systems teamed up to distribute the Kyphon KyphoFlex unipedicular balloon catheter for treating VCFs [vertebral compression fractures] in the US.
