Merit Medical Systems announced that it acquired View Point Medical in a deal worth approximately $140 million.
South Jordan, Utah-based Merit agreed to pay $90 million in cash at closing. The deal also features two deferred payments of $25 million set for no later than the first and second anniversaries of the closing date, respectively. Through the merger transaction, Carlsbad, California-based View Point is now a wholly-owned subsidiary of Merit.
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View Point manufactures the OneMark detection imaging system and OneMark tissue markers. The FDA-cleared OneMark system features a surgical detection console and ultrasound-enhanced tissue markers. OneMark breast markers use silica microspheres, which don’t emit energy but change the timing of waves from ultrasound energy, which creates a bright color image showing the location of the marker.
After placement, View Point designed its tissue markers for visibility across commonly used imaging modalities. They also minimize interference with imaging studies.
Combining the Merit Scout surgical guidance platform with OneMark provides more localization options during the initial diagnostic biopsy. This could reduce the need for a second procedure to mark the location of a tumor prior to surgery.
Merit expects its acquisition to contribute revenue between $2 million and $4 million from today through the end of 2026. It anticipates an approximately 5¢ dilution to adjusted EPS, diluting both full-year GAAP net income and GAAP EPS.
For the 12 months ending Dec. 31, 2027, the company expects revenues between $14 million and $16 million. It anticipates at least 20% growth in OneMark sales per year.
Martha G. Aronson, Merit president and CEO, said:
“This acquisition expands Merit’s portfolio of therapeutic oncology products dedicated to the accurate diagnosis and localization of breast and soft tissue tumors. Merit has built a market leadership position in wire-free, non-radioactive breast localization procedures. This leadership is built upon our Scout platform, which utilizes the precision and accuracy of radar. View Point’s unique ultrasound-enhanced technology offers a highly innovative solution to localize more lesions at the time of biopsy – representing an estimated 1.3 million procedures annually in the United States alone.”
Adam Smith, Merit CCO, said:
“The acquisition of View Point reinforces Merit’s mission to help reduce the burden that breast cancer places on patients and their loved ones. As treatment protocols evolve, the suspicious area is often most visible at the time of biopsy. Localizing these areas early in a patient’s cancer journey can help physicians plan treatment and may help reduce the need for additional localization procedures.”
BTIG analysts Sam Eiber, Marie Thibault and Alexandra Pang maintain a “Buy” rating for Merit Medical on the back of the acquisition.
“We believe this acquisition is a nice strategic fit given the overlap in customer call points,” the analysts wrote.
