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Merit proposes to acquire the C2 CryoBalloon assets from Pentax of America, Inc. for total purchase consideration of $22 million, consisting of a $19 million cash payment at closing and potential contingent payments of up to $3 million payable upon meeting certain milestones. The acquired assets are projected to contribute revenue, from a projected closing date of November 1, 2025 through December 31, 2025, of approximately $1 million and are projected, during the same period of time, to dilute Merit's previously forecasted non-GAAP net income and non-GAAP earnings per share, by approximately $0.4 million and $0.01, respectively. The acquisition is projected to be dilutive to Merit's full-year 2025 GAAP net income and GAAP earnings per share by approximately $0.5 million and $0.01, respectively.
The proposed acquisition is projected to contribute revenue in the range of approximately $6 million to $8 million for the twelve months ending December 31, 2026, and to be dilutive to Merit's non-GAAP net income and non-GAAP earnings per share in the range of approximately $1 million to $2 million, or $0.02 - $0.03 per share, respectively, and to be accretive thereafter. The proposed acquisition is projected to be dilutive to Merit's GAAP net income and GAAP earnings per share in the range of approximately $2 million to $3 million, or $0.03 - $0.05 per share, respectively.
Posted In: MMSI