Merit Medical (NSDQ:MMSI) said yesterday that it put $60 million on the table to acquire Vascular Insights and its ClariVein line of catheters, including a $20 million milestone pegged to sales targets.
Quincy, Mass.-based Vascular Insights makes the ClariVeinIC and ClariVeinOC infusion and occlusion catheters for treating superficial venous disease.
“We have had our eye on these products for some time,” Merit founder, chairman & CEO Fred Lampropoulos said in prepared remarks. “These products complement our existing peripheral intervention sales platform, add to our capability to provide many existing Merit products, such as our micropuncture and vascular access products, and increase our ability to customize the entire procedure for our customers. Additionally, our global sales footprint allows for expansion of sales in previously underserved areas.”
“We are excited to reach this agreement with Merit,” added Vascular Insights CEO Chip Draper. “This acquisition will allow ClariVein to reach more patients in more ways and in more places with the commitment to treat venous disease.”
“I am thrilled that Merit and ClariVein will bring transformative relief to millions of venous disease sufferers worldwide, especially those suffering from debilitating venous leg ulcers,” ClariVein inventor and Vascular Insights co-founder Dr. Michael Tal said.
Merit said it expects the buyout to dilute its adjusted earnings per share by -2¢ this year but to add as much as 2¢ to 2019 adjusted EPS on ClariVein revenues of $10 million to $11 million.
SunTrust Robinson Humphrey advised Merit on the deal, with Parr Brown Gee & Loveless as legal counsel. Vascular Insights was advised by Oppenheimer, with Latham & Watkins as counsel.
MMSI shares closed down -3.1% at $54.53 yesterday.
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