CONMED Agrees To Acquire SurgiQuest For $265 Mln On Cash-free, Debt-free Basis

(RTTNews) - CONMED Corp. (CNMD) announced a definitive agreement to acquire privately-held SurgiQuest, Inc. for $265 million on a cash-free, debt-free basis, to bolster CONMED's Advanced Surgical portfolio.

The company does not expect the acquisition to have a material impact on fiscal year 2015 operating results. In fiscal year 2016, the acquisition is expected to add $55 to $60 million to the company's revenue. Further, CONMED projects net cost savings will approximate $15 million per year.

The transaction will be financed through a combination of cash and borrowings under a new credit facility. The transaction is expected to close in the first quarter of 2016.

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 procedures.

AirSeal consists of a valve-free trocar with continuous pressure sensing and an integrated insufflator and smoke evacuator. It has been used in more than 250,000 procedures worldwide. Published clinical data demonstrates that AirSeal leads to shorter procedure times and reduced post-operative pain.

Kurt Azarbarzin, SurgiQuest's Founder and Chief Executive Officer, will join CONMED as Chief Technology Officer of the Advanced Surgical business. He will report to Bill Peters, Vice President and General Manager of Advanced Surgical.