Surmodics, a provider of medical device coatings and in vitro diagnostic technologies, announced a definitive agreement to be acquired by GTCR, a prominent private equity firm, for approximately $627 million.

Under the agreement, GTCR affiliates will purchase all outstanding Surmodics shares at $43.00 per share in cash. This acquisition price represents a 41.1% premium over Surmodics’ 30-day volume-weighted average closing price as of May 28, 2024. The Surmodics board of directors has unanimously approved the transaction and recommends that shareholders vote in favor.

“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,” said Gary Maharaj, president and CEO of Surmodics. “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.”

Since its inception, GTCR has invested more than $25 billion in over 280 companies, and the firm currently manages $40 billion in equity capital. GTCR is based in Chicago with offices in New York and West Palm Beach

Sean Cunningham, managing director and head of healthcare at GTCR, added, “With its long-standing, 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. We look forward to partnering with the Surmodics team to continue to expand the company’s offering and broaden its reach.”

The transaction, expected to close in the second half of 2024, is subject to customary closing conditions, including approval by Surmodics shareholders and regulatory approval. Financing will be through a combination of committed equity from GTCR-affiliated funds and committed debt financing. Post-transaction, Surmodics will become a privately held company and its stock will no longer be listed on Nasdaq.

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