My take is someone approached them about a buyout in early 2013.
Offer was most likely very good but not enough that they couldnt see what other offers were out there
The BOD then decided to gauge the market and hired an investment banker in March.
Most processes take 4-6 months so we are now right in the sweet spot of an announcement.
They would have gotten final bids before an LOI at the end of August. Someone is now in exclusivity which should be expiring soon.
If this deal was dead, the same people who initially leaked would have killed it by now. They would have gotten bids in May and again July. If the bids were not worth considering, we would have heard.
Deal is imminent - just a question on the price. The ROCM deal yesterday was massive. This thing could go from $75 - $100. Nothing would surprise me.
The source was deal reporter. Hopefully Bloomberg which reported on the exclusivity back in August will follow up with an article with more details soon. Yes, with a tag team approach one would think the offer would be higher and each suitor would get the parts of ICU that they want.
Now we know what the delay in the sales process was. News out this afternoon. "Suitor GTRC said to be working with BAX for joint bid."
FYI, GTRC is the PE Firm and BAX is Baxter. Expect Reuters and Bloomberg to follow up with an article soon with more details.
My bad on the stated ROCM EBITDA takeout multiple. I actually copied it from the yahoo finance / company / key statistics page last week which may not have updated post deal news. For some reason today the EV / EBITDA value has refreshed to display 23.60x which is accurate. FYI today ICUI EV / EBITDA multiple is 9.91x so lets see what multiple ICUI can negotiate with the PE firm.
Scheinrocks, all good points to bring out. The process is painful but hopefully it will be all over soon. As an FYI, ROCM EBITDA takeout multiple was 14.58x and not 20x. I understanding using comps but some other points to consider.
ICUI marketcap is 4 times ROCM
ICUI EBITDA is 8.43 times ROCM
ICUI is in exclusive talks with a PE Firm; ROCM is being acquired by a strategic buyer
Looks like both companies founders (ICUI founder) and ROCM (2 co-founders) are cashing out
Smaller companies generally receive a higher control premium versus larger firms; ROCM is being taken out for a 37% control premium.
My best guess is, ICUI gets taken out in the $75 to $80 range.
Cybercash28 should have thought about shorting earlier in the process not at the end. Bad timing now. I thought she / he was better than that. Might be better at RSI stocks versus M&A targets.
Can you post your math on the ROCM deal? I think you are way off.
Multiple is solely a function of growth and synergies. No synergies with a PE firm though. Wouldn't expect a ROCM type multiple but if its not at least 11-12x - then there is no deal. ICUI wont sell otherwise.
I agree with Schein, they wouldn't have started this process without someone approaching them so they must know $75-80 is a floor price. Rumors say CFN and HSP were at $80.