Time New York: Thu 17 Jan 23:16 pm  |  Save 15% on H&R Block Online


Laborie Medical Technologies to Acquire Cogentix Medical


Cogentix Medical, Inc. CGNT recently announced that it has entered a definitive merger agreement with Laborie Medical Technologies. Per the deal, Laborie Medical Technologies will buy all of the outstanding shares of Cogentix Medical for a net worth of $239 million. The company is a leading player in the Urology, Gynecology, and Colorectal fields

Cogentix Medical expects the transaction to close in the first half of the second quarter of 2018. Once completed, Cogentix Medical will become a wholly-owned subsidiary of Laborie Medical Technologies.

Price Performance

Cogentix Medical’s shares have returned 92.7% in the past year, compared with the S&P 500 Index’s rally of 16.2%.

The stock has also outperformed its industry's gain of 25.4%. Cogentix Medical has a market cap of $177.24 million.

Cogentix Medical has a Zacks Rank #3 (Hold).

The Agreement in Detail

Per the terms of the agreement, Laborie Medical technologies will initiate a tender offer for all outstanding shares of Cogentix Medical’s common stock for $3.85 per share in cash. The company will execute the deal through its wholly-owned subsidiaries of LM US Parent, Inc. and Camden Merger Sub, Inc.

Following the successful completion of the tender offer, there will be a ‘second-step merger’ in which all the outstanding shares of Cogentix Medical’s common stock, which are not tendered, will be converted into the right to receive $3.85 per share of common stock, in cash. The transaction is subject to other customary closing conditions.

Notably, Cogentix Medical is a leading player in the global urology markets. The company’s recent initiative to sign a licensing agreement that will allow it to launch an Endo-Urology product line in the United States is noteworthy. This product is focused on minimally invasive treatment of kidney stones. Initial response of physicians to the product has been positive.

Per management, this latest transaction is also a great financial opportunity, which will deliver strong margin expansion over the long haul.

Market Potential

Per Markets & Markets, the urology devices market is estimated to reach a worth of $44.37 billion by 2022, at a CAGR of 7.1%. Considering the prospects in the niche space, we expect Cogentix Medical to gain solid prominence in the days to come.

However, the company faces stiff competition from MedTech giant Medtronic plc MDT.

Key Picks

A few better-ranked stocks in the broader medical sector are PerkinElmer PKI and Bio-Rad Laboratories BIO.

PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2 (Buy).

Bio-Rad Laboratories sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The company has a long-term expected earnings growth rate of 20%.

Breaking News: Cryptocurrencies Now Bigger than Visa

The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.

Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.

Click here to access these stocks. >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.