AngioDynamics Divests Dialysis Portfolio And Biopsy Product Line To Merit Medical Systems For $100M
Portfolio Pulse from Nabaparna Bhattacharya
AngioDynamics has divested its Dialysis product portfolio and BioSentry Tract Sealant System Biopsy product to Merit Medical Systems for $100 million in cash. The divested assets contributed approximately $32 million in sales in FY23. AngioDynamics plans to use the proceeds to pay debts and support strategic investments.
June 09, 2023 | 2:03 pm
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NEUTRAL IMPACT
AngioDynamics divests Dialysis and Biopsy product lines to Merit Medical Systems for $100M, plans to pay debts and support strategic investments.
The divestiture will help AngioDynamics pay off debts and support further strategic investments. However, the divested assets contributed $32 million in sales in FY23, which may have a negative impact on future revenues. The overall impact on the stock price is expected to be neutral in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Merit Medical Systems acquires Dialysis and Biopsy product lines from AngioDynamics for $100M, expects acquisitions to be accretive to non-GAAP net income and EPS.
The acquisition of the Dialysis and Biopsy product lines from AngioDynamics is expected to be accretive to Merit Medical's non-GAAP net income and EPS in the first full year post-closing. This positive financial impact is likely to have a short-term positive effect on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100