Surmodics Acquisition Finalized as GTCR Deal Clears Final Hurdle

The privatization of medical device firm Surmodics by an affiliate of private equity giant GTCR LLC has been sealed. This transaction has already resulted in the company's delisting from public markets, triggering significant portfolio adjustments among its major institutional shareholders.

The final obstacle to the $627 million acquisition was removed following a pivotal court decision. On November 10, a federal judge denied a request by the U.S. Federal Trade Commission (FTC) for a preliminary injunction to block the takeover. The FTC confirmed on November 17 that it would not appeal this ruling, granting clear regulatory passage for the deal to close.

The immediate consequences were swift and decisive. Nasdaq removed Surmodics from the Nasdaq Composite Index on November 18. The exchange also issued a formal delisting notification to the company in mid-November, leading to the permanent cessation of trading for Surmodics shares on the platform.

Institutional Investors Rebalance Holdings Ahead of Takeover

The impending shift to private ownership compelled major funds to realign their investment positions. In the second quarter, Groupe la Francaise significantly reduced its stake by 28.2%, divesting 33,700 shares. By the quarter's end, the fund retained a holding of 85,800 Surmodics shares, valued at approximately $2.55 million.

Should investors sell immediately? Or is it worth buying Surmodics?

Activity in the prior quarter presented a more varied picture. While Invesco Ltd. more than doubled its position and Nuveen LLC established a new stake, several other funds chose to decrease their exposure. Collectively, institutional investors and hedge funds control roughly 96.6% of the company's equity.

Final Analyst Assessment and Financial Snapshot

In its last days as a public entity, the consensus view among market analysts was cautious. The average rating stood at "Reduce," accompanied by a price target of $43.00. This conservative stance reflected expectations prior to the GTCR deal entering its conclusive phase.

The most recent quarterly report, for the first fiscal quarter of 2025, indicated a slight revenue decline to $29.9 million. Adjusted EBITDA for the period was reported at $3.6 million. With the completion of the acquisition by GTCR, Surmodics will cease its financial reporting as a publicly traded company.