UTICA, N.Y. — ConMed Corp. (NASDAQ: CNMD) on Monday morning announced it would acquire privately held SurgiQuest, Inc., a Connecticut–based surgical-device maker, for $265 million.
Shares of Utica–based ConMed jumped $3.14, or 8.2 percent, to close at $41.48 in Monday’s regular trading.
ConMed said in a news release that it would finance the transaction through a combination of cash and borrowings under a new credit line.
The company expects the transaction to close in the first quarter of 2016. The deal is subject to customary closing conditions, including getting regulators to approve it.
Founded in 2006 and headquartered in Milford, Connecticut, SurgiQuest develops, manufactures, and markets the AirSeal system, the first “integrated,” access-management technology for use in laparoscopic and robotic-surgery procedures, according to ConMed.
“Revitalizing the advanced-surgical business is a key element of our general-surgery strategy, and this transformative acquisition uniquely bolsters the progress we have made. The AirSeal system is a highly differentiated technology which is fast becoming the standard of care in laparoscopic and robotic surgery where it delivers benefits for the patient, the surgeon, and the hospital. We are very excited to add it to our growing advanced-surgical portfolio,” Curt Hartman, president and CEO of ConMed, said in the firm’s release.
Kurt Azarbarzin, SurgiQuest’s founder and CEO, will join ConMed as chief technology officer of the advanced-surgical business.
ConMed said it expects the acquisition to add between $55 million and $60 million to its revenue in its 2016 fiscal year. In addition, ConMed projects net cost savings of about $15 million per year.
ConMed on Oct. 21 reported adjusted net earnings of $10.6 million, or 38 cents a share, in the third quarter, excluding non-recurring items. The firm missed analysts’ earnings estimates by 5 cents per share and lowered its profit forecast for 2015.
Contact Reinhardt at ereinhardt@cnybj.com
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