More good news for Synovis (SYNO) shareholders, as FQ4 earnings rose a better-than-expected 83%, continuing the medical device company's streak of double-digit sales growth. Sales of its Peri-Strips for gastric bypass surgery, the biggest contributor to its top line, climbed 28%. Yesterday, SYNO agreed to be acquired by Baxter (BAX) for $28/share.
Diversified medical products giant Baxter (BAX) announces it's acquiring surgical device maker Synovis (SYNO) for $28/share, or $260M after adjusting for net cash. The price represents a 52% premium to Synovis' Monday close. Baxter expects the deal, which is expected to close in Q1, will be dilutive to its 2012 EPS by $0.04, but will be neutral to 2013 EPS, and accretive afterwards.
Synovis Life Technologies (SYNO +4.5%) trades higher this morning after its FQ3 beat estimates. Revenues were a record $21M, jumping 20% Y/Y as the small medical-device company racks up double-digit sales growth on strong demand for its Peri-Strips products.