Merit Medical acquires Brightwater Medical

|About: Merit Medical Systems,... (MMSI)|By:, SA News Editor

Merit Medical Systems (MMSI +0.8%) has acquired Brightwater Medical where, the transaction consists of a $35M upfront payment and potential earn-out payments of up to $15M.

Merit Medical’s management estimates that the transaction will be ~$(0.05) decretive to GAAP EPS and ~$(0.03) decretive to Non-GAAP EPS for the year ending December 31, 2019.

Management’s current revenue expectations for the ConvertX® product for CY 2019 are ~$1M with expectations of growth to ~$25M in the fifth full year of sales.

Upon transfer of the ConvertX® manufacturing operations to Merit’s Pearland facility, management believes Non-GAAP gross margins in the 70-75% range are attainable.

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