The $265 million deal, announced just a week after Milford, Conn.-based SurgiQuest filed for a $75 million initial public offering last November, was funded with a $175 million term loan and a $525 million credit revolver.
Utica, N.Y.-based ConMed said it expects the buyout to add $55 million to $60 million to the top line during fiscal 2016, with net savings of roughly $15 million annually. Additional guidance is slated to be released when ConMed reports its 4th-quarter results later this month. the financial impact of the transaction when it reports fourth quarter financial results in late January.
The AirSeal device, which won 510(k) clearance from the FDA in May 2015, is designed to insufflate the rectum and provide continuous smoke evacuation.
“Revitalizing the advanced surgical business is a key element of our general surgery strategy, and this transformative acquisition uniquely bolsters the progress we have made. The AirSeal system is a highly differentiated technology which is fast becoming the standard of care in laparoscopic and robotic surgery where it delivers benefits for the patient, the surgeon, and the hospital. We are very excited to add it to our growing advanced surgical portfolio,” president & CEO Curt Hartman said when the deal was announced last year. “We congratulate and welcome SurgiQuest’s talented management and its scientific and sales teams to ConMed. We look forward to joining forces once the transaction closes and providing industry leading technologies to our global customer base.”
“We are excited to become part of ConMed. We believe that the combination of our organizations’ salesforces, the addition of our research and development expertise, as well as our keen focus on innovation, will enable us to expand our collective market share and to provide distinctively better solutions that improve both the doctor and patient experience,” added SurgiQuest founder & CEO Kurt Azarbarzin, who’s due to join ConMed as chief technology officer for its advanced surgery business.