MiMedx Group (Nasdaq: MDXG) will acquire all of Sanara MedTech (Nasdaq: SMTI) in a cash-and-stock transaction valued at $35 per Sanara share.
The deal, announced yesterday, has a total enterprise value of approximately $350 million.
Sanara develops and commercializes regenerative products for surgical markets. In addition to Sanara’s CellerateRX Surgical Powder, Biasurge Advanced Surgical Solution and additional soft tissue and musculoskeletal products, the company is working towards a 2027 commercial launch of its OsStic BioAdhesive Advanced Bone Fixation, which has FDA Breakthrough Device designation.
MiMedx CEO Joseph H. Capper said in a news release: “Over the last several years, MiMedx has demonstrated the ability to drive strong, double-digit growth in surgical end markets. With Sanara, we will accelerate this effort and meaningfully expand our reach across several subspecialties. On a combined basis, 2027 total revenue is expected to be well in excess of $400 million with an adjusted EBITDA margin expected to be over 20%.”
Under the terms of the agreement, Sanara shareholders will receive $33.00 in cash and 0.4735 shares of MiMedx common stock for each share of Sanara common stock they own, which represents a value of $2.00 per share, calculated based on the average closing price of MiMedx common stock of $4.22 for the last five consecutive trading days through and including July 28, 2026. The merger consideration represents a premium of 46% to Sanara’s 30-day volume-weighted average share price as of July 28, 2026.
MiMedx expects to finance the cash portion of the transaction through a combination of cash on hand and a new, committed debt financing in the form of a $300 million term loan, which has been secured with Hayfin Capital Management. In connection with the execution and delivery of definitive documentation with respect to the debt financing by Hayfin, MiMedx’s existing credit agreement will be terminated and all amounts outstanding will be repaid in full.
MiMedx is making the acquisition amid a new reimbursement landscape: The Centers for Medicare and Medicaid Services (CMS) has finalized a reimbursement overhaul for skin substitutes, shifting to a flat national rate of approximately $127 per square centimeter regardless of brand. For the second quarter ended June 30, 2026, MiMedx’s net sales fell 35% year-over-year, with wound category sales down 61%, even as volume grew by 22% from Q1.
The Sanara acquisition has been unanimously approved by the board of directors of both companies and is expected to close by the end of the year, subject to approval by Sanara shareholders, the receipt of required regulatory approvals and other customary closing conditions.
