Merit Medical Systems has agreed to acquire medical device company EndoGastric Solutions, for a cash consideration of around $105m.
This acquisition includes EndoGastric’s EsophyX Z+ device, a non-pharmacological treatment for gastroesophageal reflux disease (GERD).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The device is designed to offer a minimally invasive solution to alleviate GERD symptoms by restoring the natural reflux barrier of the body.
A procedure, known as transoral incisionless fundoplication (TIF 2.0), is performed under endoscopic visualisation and is designed to reduce acid reflux that may lead to long-term health issues.
Additionally, TIF 2.0 can be paired with a surgical hiatal hernia repair in a combined procedure called concomitant transoral incisionless fundoplication (cTIF).
Merit chairman and CEO Fred Lampropoulos said: “This acquisition is consistent with our Continued Growth Initiatives. It enhances our product portfolio in existing clinical specialities while expanding our global footprint in the multi-billion-dollar gastrointestinal market.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“We look forward to helping more patients by providing clinicians with a sustained and minimally invasive treatment option for chronic GERD.”
Merit Medical said the assets acquired from EndoGastric Solutions reported revenues of approximately $26m for the 12-month period that ended on 31 December 2023.
Post-acquisition, these assets are projected to contribute revenues in the range of $13m to $15m from the closing date through 31 December 2024.
Lampropoulos added: “In addition to the strong strategic rationale, we believe the financial profile of this acquisition is compelling. While modestly dilutive to our full-year 2024 non-GAAP profitability given the partial-year contribution, we expect the acquisition to be accretive to our non-GAAP gross and operating margins, non-GAAP net income and non-GAAP EPS in the first full year post-closing.
Last month, Medtronic and Merit Medical Systems teamed up to distribute the Kyphon KyphoFlex unipedicular balloon catheter for treating VCFs [vertebral compression fractures] in the US.
