“Our companies share a rich history of developing technologies that put patients' needs first. Merit Medical brings exceptional resources to the Cianna Medical team that will intensify its growth and broaden its focus beyond breast cancer,” Cianna Medical president and CEO Jill Anderson said in a statement. “I am delighted that Mr. Lampropoulos will lead an efficient integration of our companies for the benefit of our employees, physicians, hospitals and the women we serve."

The transaction has been approved by the board of directors for both companies, and is subject to the satisfaction or waiver of certain closing conditions, including the approval of Cianna Medical stockholders, clearance under the Hart-Scott Rodino Antitrust Improvements Act, and other customary closing conditions.


If completed, the proposed transaction in 2019 will be non-accretive to Merit earnings per share on a GAAP basis in the range of $0.06-$0.10 per common share and accretive to Merit earnings per share on a non-GAAP basis in the range of $0.08-$0.13 per common share. Anticipated GAAP gross margins on Cianna Medical products are 55-65 percent, and for non-GAAP margins, 70-75 percent. They are accretive to both Merit’s GAAP gross margin and non-GAAP gross margin in the range of 55-130 basis points with add revenues in the range of $50-$56 million.

Financial advisors who oversaw the deal for Merit were Piper Jaffray & Co. and Raymond James & Associates. J.P. Morgan Securities LLC acted as financial adviser to Cianna Medical, while legal advisers included Parr Brown Gee & Loveless P.C. for Merit, and Wilson Sonsini Goodrich & Rosati, P.C. for Cianna Medical.

Both SCOUT and SAVI Brachy are FDA cleared. SAVI Brachy is also CE marked while SCOUT is expected to obtain the same accreditation in 2019.

Merit Medical Systems did not respond for comment.

Back to HCB News

Operating Room Homepage