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EDEN PRAIRIE, Minn. - Surmodics, Inc. (NASDAQ:SRDX), a medical technology firm with a market capitalization of $424 million, is set to defend its planned merger with affiliates of GTCR LLC in court, following the U.S. Federal Trade Commission’s (FTC) move to oppose the acquisition. According to InvestingPro data, the company’s stock has fallen nearly 10% in the past week amid the regulatory uncertainty. Surmodics stated today that it disagrees with the FTC’s decision and is focused on completing the merger, which it believes is pro-competitive and beneficial to stakeholders.
The merger agreement, announced on May 29, 2024, involves GTCR acquiring all outstanding shares of Surmodics for $43.00 per share in cash, totaling about $627 million. This offer price represents a significant premium to the current trading price of $29.62, reflecting market skepticism about the deal’s completion. InvestingPro analysis shows the company maintains strong liquidity, with current assets significantly exceeding short-term obligations. The transaction is to be financed through a mix of equity from GTCR-affiliated funds and committed debt financing. Once finalized, Surmodics will become a private entity, and its shares will be delisted from the Nasdaq Global Select Market.
Surmodics shareholders approved the transaction on August 13, 2024. The company has been working with the FTC to obtain regulatory clearance but is now preparing to defend the merger in court due to the FTC’s recent litigation initiative.
The company cautions that forward-looking statements in its communications, such as the anticipated outcome of litigation and the merger’s completion, are based on current expectations and involve risks and uncertainties. Factors that could affect the actual results include the possibility of not prevailing against the FTC, delays or failure to complete the merger, and potential impacts on Surmodics’ business operations and stock price.
Surmodics specializes in medical device coatings and in vitro diagnostic technologies. Its mission is to enhance disease detection and treatment through its expertise in surface modification, drug-delivery coating technologies, and medical device design and manufacturing. Financial data from InvestingPro reveals the company generated revenue of $125.45 million in the last twelve months, though it currently operates at a loss. Get access to 8 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
This news article is based on a press release statement from Surmodics, Inc. The company’s future statements are subject to various risks, and there is no assurance that the merger will be completed as planned.
In other recent news, Surmodics Inc. announced the results of its Annual Meeting of Shareholders, which included several significant decisions. Shareholders re-elected Gary R. Maharaj as a Class II director with 8,404,069 votes in favor, while also approving the proposal to set the number of directors at five. The appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year 2025 was ratified by a substantial majority. Additionally, the compensation of Surmodics’ named executive officers received approval through an advisory vote. These decisions indicate shareholder support for the company’s governance and executive compensation practices. Surmodics has not provided further comments on the outcomes of these votes. The information was disclosed in a press release filed with the Securities and Exchange Commission.
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