After 21 years as a public company, Exactech Inc. (NASDAQ: EXAC) is headed private. The Gainesville, Florida-based maker of orthopaedic implant devices, related surgical instruments and biologic materials and services to hospitals and physicians said Monday that it has agreed to a deal to be acquired by private equity firm TPG Capital for $625 million.
Founded in 1985 by Dr. Bill Petty, his wife Betty Petty and Dr. Gary Miller, Exactech has over 700 employees and sells its products in over 35 countries. In the second quarter, the company generated revenue of $67.3 million and net income of $4.8 million, or 33 cents per share.
Revenue for the third quarter was expected to be about $61.4 million, impacted in part by Hurricanes Harvey and Irma that caused delays in surgeries and other procedures the required Exactech products.
Per the agreement, shareholders of EXAC will receive $42.00 per share in cash, representing a 31% premium to Friday’s closing price and 37% over the 90-day volume weighted average price (VWAP). Certain management, including the founders and CEO David Petty have agreed to swap a “significant portion” of their shares for new shares in the parent company to be formed after the merger is closed.
The buyout price also represents an all-time high for EXAC stock. Exactech’s board has approved the agreement, expected to close in the first three months of 2018 and result in the company being delisted from the NASDAQ exchange.
The acquisition is in line with TPG Capital’s strategy to invest in healthcare that has included over $8 billion in investments in the past decade. TPG has more than $73 billion of assets under management.
Shares of closed Monday at $41.85, just under the buyout price.
