ConMed to drop $265m on SurgiQuest

ConMed (NSDQ:CNMD) said it agreed to pay $265 million to acquire SurgiQuest, which just last week filed for an initial public offering.

Milford, Conn.-based SurgiQuest makes the AirSeal device for use in minimally invasive abdominal surgeries. AirSeal is designed to insufflate the rectum and provide continuous smoke evacuation.

ConMed, which is based in Utica, N.Y., said it plans to finance the buyout using cash and a new credit facility. The deal is expected to close during the 1st quarter next year.

“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,” president & CEO Curt Hartman said in prepared remarks. “We congratulate and welcome SurgiQuest’s talented management and its scientific and sales teams to ConMed. We look forward to joining forces once the transaction closes and providing industry leading technologies to our global customer base.”

“We are excited to become part of ConMed. We believe that the combination of our organizations’ salesforces, the addition of our research and development expertise, as well as our keen focus on innovation, will enable us to expand our collective market share and to provide distinctively better solutions that improve both the doctor and patient experience,” added SurgiQuest founder & CEO Kurt Azarbarzin, who’s due to join ConMed as chief technology officer for its advanced surgery business.

ConMed said it expects double-digit accretion next year from the SurgiQuest buyout for adjusted earnings per share on $55 million to $60 million in additional revenues.

SurgiQuest last week registered for an IPO estimated at $75 million. The AirSeal device won 510(k) clearance from the FDA in May.

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