US-based medical device coatings firm Surmodics has agreed to be acquired by private equity firm GTCR in a deal worth around $627m in a move to go private.

According to the terms of the agreement, GTCR’s affiliates will purchase all outstanding shares of Nasdaq-listed Surmodics for $43 per share in cash.

The per-share acquisition price marks a premium of 41.1% over the 30-trading day volume-weighted average closing price of the medical device coatings company through 28 May 2024.

Surmodics’ board of directors has given its unanimous approval to the deal and intends to recommend stockholders vote in favour of it.

The acquisition will be funded through a blend of committed equity from GTCR-affiliated funds and committed debt financing.

Following the deal’s conclusion, the Minnesota-based medical device coatings developer will become a privately held entity, with its common stock no longer traded on the Nasdaq stock exchange.

Surmodics president and CEO Gary Maharaj said: “We are pleased to announce this transaction, which enables Surmodics shareholders to realise immediate value creation with a substantial premium, reflecting the significant progress and important achievements made by our employees.

“GTCR is an ideal partner for Surmodics, given its extensive history and deep domain expertise in the Healthcare sector, and I am confident that this transaction will position the company to continue to deliver compelling benefits for physicians, patients and customers going forward.”

Surmodics supplies performance coating technologies for intravascular medical devices.

It also produces chemical and biological components for in vitro diagnostic immunoassay tests and microarrays.

Additionally, the company is also engaged in development and commercialisation of vascular intervention medical devices.

GTCR managing director and healthcare head Sean Cunningham said: “With its longstanding, blue chip customer relationships and a rich history of developing medical technologies that deliver enhanced performance and improved clinical outcomes, Surmodics is well-positioned for attractive, long-term growth and value creation.”

Surmodics received financial advisory services from Jefferies and legal counsel from Faegre Drinker Biddle & Reath.

On the other hand, GTCR was legally advised by Kirkland & Ellis and Cleary Gottlieb Steen & Hamilton, with financial advisory provided by Goldman Sachs.

The transaction is anticipated to conclude in the latter half of the calendar year 2024, pending standard closing conditions such as approval from Surmodics’ shareholders and regulatory clearance.