Medical Device Network

Merit Medical to acquire EndoGastric Solutions for $105m

The assets are projected to contribute revenues in the range of $13m to $15m from the closing date through 31 December 2024.

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).

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.

“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.