Medical device maker Misonix, Inc. (NASDAQ: MSON) announced Thursday that it entered a definitive agreement to acquire privately held Solsys Medical, LLC in an all-stock transaction valued at about $97 million.
Per the deal, Misonix said it will issue approximately 5.7 million new shares to Solys unitholders.
After the deal closes, Misonix shareholders will own 64 percent of the combined entity and Solys unitholders will own 36 percent, according to the press release.
Misonix said it will assume Solys' outstanding secured debt of roughly $20 million.
Why It's Important
Solys markets an advanced wound care product, TheraSkin, which is a cellular- and tissue-based product for regenerative wound healing that's designed to treat difficult-to-heal chronic wounds.
The acquisition of Solys adds to Misonix's addressable market with wound care solutions that are complementary to Misonix's existing products, according to the announcement.
Solys is expected to achieve sales about $32 million in calendar 2019, and the pro forma company is expected to generate more than $80 million in sales. The combined company expects top-line annual revenue growth of more than 20 percent in the coming years.
The boards of both companies have approved the deal.
The closing of the acquisition and issuing of Misonix shares hinges on approval by Misonix shareholders — as well as 55 percent of Solys Series E unitholders, a majority of its common unitholders, Series A unitholders, Series B unitholders, Series C unitholders and Series D unitholders.
The transaction is expected to be completed in the third quarter of 2019.
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Photo courtesy of Misonix.
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