Endologix (NSDQ:ELGX) and TriVascular Technologies (NSDQ:TRIV) said yesterday that they closed their $221 million merger, uniting 2 of the stent graft market’s smaller players.
Both companies makes devices for treating abdominal aortic aneurysms; Irvine, Calif.-based Endologix makes 2 lines of stent grants, the Nellix and AFX devices, while Santa Rosa, Calif.-based TriVascular makes the Ovation stent graft.
“The completion of the merger with TriVascular is a major milestone for both companies that further enhances our technology platforms and positions the combined business for robust growth with an accelerated path to profitability. Both teams have been working diligently preparing for the merger and we believe that we are well positioned to execute on our integration and commercial plans,” Endologix chairman & CEO John McDermott said in prepared remarks. “In the near-term, our focus is on training the combined sales and clinical teams, introducing our comprehensive product portfolio to physicians and successfully capturing identified synergies.”
In November the companies said the U.S. Federal Trade Commission and Justice Dept. granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which had been slated to expire Dec. 9. The cash-and-stock deal, announced in September, values TriVascular at $9.10 per share. Endologix shareholders now own 84% of the new company, with TriVascular stockowners holding the remaining 16%.
The new company is slated to operate under the Endologix banner, with TriVascular as a wholly-owned subsidairy. TriVascular president & CEO Christopher Chavez joined the Endologix the board as part of the deal.
Endologix affirmed its long-range forecast for compound annual sales growth of 20% over the next 5 years and an adjusted EBITDA margin of approximately 20%.