Merit Medical acquires View Point Medical for $140M

Merit Medical (MMSI) announced it has acquired View Point Medical. Through a merger transaction, View Point is now a wholly-owned subsidiary of Merit. View Point, located in Carlsbad, California, manufactures the OneMark= Detection Imaging System and OneMark Tissue Markers. The aggregate transaction consideration, including the assumption of ViewPoint liabilities, is approximately $140M. Of that amount, $90M was paid in cash at closing and two deferred payments of $25M each are scheduled to be paid not later than the first and second anniversaries of the closing date, respectively. From the acquisition effective date of April 1 through December 31, the acquisition is projected to contribute revenue in the range of $2M to $4M and to dilute Merit’s previously forecasted non-GAAP earnings per share by approximately 5c, inclusive of approximately $2M of lower interest income on cash balances used for the total purchase consideration and excluding approximately $5.3M of non-cash and non-recurring transaction-related expenses, and to be dilutive to Merit’s full-year 2026 GAAP net income and GAAP earnings per share. The acquisition is projected to be dilutive to Merit’s GAAP net income and GAAP earnings per share in 2027 and accretive thereafter.