I'm going to post the announcement of the company's purchase even though it's a month late. Now second half of 24 when the transaction is to conclude at $43. Stock is hanging around $42 and I suppose that is due to fears that the transaction won't occur after all. Often I see speculators guessing on perhaps a higher bid, but in this case the company is so small and the board has unanimously agreed to the purchase, so I guess only the possibility of the deal falling through is having an effect.
For my own purposes there is no sense in selling at $42 since I'd still have a huge capital gain and I really expect to get $43 in a few months. 2%+ for 3 months is worth waiting for. As expected, no options activity since 6/18 though a couple of curious transactions then reported in Yahoo. Spurious and I suppose just some order someone forgot to cancel when the news came out.
I am disappointed in this action by the board as SRDX was a company I was invested heavily in. Good news could have spiked the shares back up near $70 even though that would probably be a speculative frenzy. I'll probably vote against approval but have little hope the deal won't go through. Here's the announcement from SRDX.
EDEN PRAIRIE, Minn., May 29, 2024--( BUSINESS WIRE)--Surmodics, Inc. (Nasdaq: SRDX), a provider of medical device and in vitro diagnostic technologies to the healthcare industry, today announced that it has entered into a definitive agreement to be acquired by GTCR, a leading private equity firm with a long track record of investment expertise across healthcare and healthcare technology.
Under the terms of the agreement, affiliates of GTCR will acquire all outstanding shares of Surmodics. Surmodics shareholders will receive $43.00 per share in cash, for a total equity valuation of approximately $627 million. 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.
"We are pleased to announce this transaction, which enables Surmodics shareholders to realize immediate value creation with a substantial premium, reflecting the significant progress and important achievements made by our employees," said Gary Maharaj, President and CEO of Surmodics, Inc. "GTCR is an ideal partner for Surmodics, given its extensive history and deep domain expertise in the Healthcare sector, and I am con?dent that this transaction will position the company to continue to deliver compelling benefits for physicians, patients and customers going forward."
"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."
The transaction is expected to close in the second half of calendar year 2024, subject to customary closing conditions, including approval by Surmodics shareholders and required regulatory approval. It will be financed through a combination of committed equity from funds affiliated with GTCR and committed debt financing. Upon completion of the transaction, Surmodics will be a privately held company and its common stock will no longer be listed on The Nasdaq Stock Exchange. |
