Surmodics to be Acquired by GTCR, a Private Equity Firm

May 29, 2024—Surmodics, Inc. announced that it has entered into a definitive agreement to be acquired by GTCR, a private equity firm with investment expertise in the healthcare and healthcare technology sector.

According to the company, the transaction is expected to close in the second half of calendar year 2024, subject to customary closing conditions, including approval by Surmodics shareholders and required regulatory approval. Surmodics’ Board of Directors has unanimously approved the transaction and resolved to recommend that stockholders vote in favor of the transaction.

“We are pleased to announce this transaction, which enables Surmodics’ shareholders to realize immediate value creation with a substantial premium, reflecting the significant progress and important achievements made by our employees,” commented Gary Maharaj, President and CEO of Surmodics, in the press release. “GTCR is an ideal partner for Surmodics, given its extensive history and deep domain expertise in the Healthcare sector, and I am confident that this transaction will position the company to continue to deliver compelling benefits for physicians, patients and customers going forward.”

In January 2024, Surmodics announced successful early clinical use of the company’s Pounce LP low-profile thrombectomy system, which received FDA clearance in June 2023. At that time, the device was in limited market evaluation. A full commercial launch is planned after completion of the market evaluation. Surmodics’ Pounce thrombectomy devices are intended for the nonsurgical removal of thrombi and emboli from the peripheral arterial vasculature.

“With its longstanding, blue chip customer relationships and a rich history of developing medical technologies that deliver enhanced performance and improved clinical outcomes, Surmodics is well-positioned for attractive, long-term growth and value creation,” said Sean Cunningham, Managing Director and Head of Healthcare at GTCR, in the press release. “We look forward to partnering with the Surmodics team to continue to expand the company’s offering and broaden its reach.”

As detailed in the announcement, under the terms of the agreement, affiliates of GTCR will acquire all outstanding shares of Surmodics. Surmodics shareholders will receive $43.00 per share in cash, for a total equity valuation of approximately $627 million. The per-share acquisition price represents a 41.1% premium to Surmodics’ 30-trading day volume-weighted average closing price through May 28, 2024.

The acquisition will be financed through a combination of committed equity from funds affiliated with GTCR and committed debt financing. Upon completion of the transaction, Surmodics will be a privately held company and its common stock will no longer be listed on the Nasdaq stock exchange, advised the company.