Merit Medical Expands Endoscopy Offering with $105M in Equipment Purchase

Merit Medical Systems (Nasdaq:MMSI) today announced that it has entered into an asset purchase agreement with EndoGastric Solutions.

The agreement includes a total of $105 million for EndoGastric Solutions’ EsophyX Z+ device. EndoGastric Solutions designed its device as a minimally invasive, non-pharmacologic treatment for patients with GERD.

EsophyX Z+ treats GERD by restoring the body’s reflux barrier, relieving symptoms, and reducing acid reflux, which can lead to long-term complications and risks. According to a press release, the device is used during a minimally invasive transoral incisionless fundoplication (TIF 2.0).

Merit Medical Chairman and CEO Fred P. Lampropoulos said the acquisition is consistent with the company’s growth initiatives. He said the purchase strengthens Merit Medical’s product portfolio in existing specialties and also expands its global reach in the gastroenterology market.

“In addition to the strong strategic rationale, we believe the financial profile of this acquisition is compelling,” he said.

Lampropoulos said the company expects operating margin growth from the acquisition. It also expects adjusted net income and earnings per share growth. Merit Medical reaffirmed its full-year fiscal 2024 financial guidance on a stand-alone basis following the acquisition.

The acquired assets generated approximately $26 million in revenue in fiscal 2023. Merit expects acquisition proceeds through December 31, 2024 to be approximately $13 million to $15 million.