Bioventus Scoops Up Misonix In $518M Stock & Cash Deal; Raises FY21 Sales Outlook

  • Recently listed Bioventus Inc BVS has agreed to acquire Misonix Inc MSON for $518 million in a cash-and-stock transaction.
  • Misonix stockholders may elect to receive either 1.6839 Bioventus shares or $28.00 in cash in the transaction. The deal value represents a 17% premium to Misonix's Thursday closing price of $23.84.
  • Bioventus expects the deal to close in Q4 of 2021.
  • Misonix provides minimally invasive therapeutic ultrasonic medical devices and regenerative tissue products.
  • Bioventus, which offers active healing and surgical orthobiologics, expects the combined entity to accelerate its BoneScalpel and Nexus adoption through spine surgical solutions footprint, augment its lower extremity offerings and commercial footprint.
  • Bioventus expects the transaction to add nearly $80 million of the calendar year 2021 revenue and provide an incremental 100 basis points to long-term average annual revenue growth rate before any potential revenue synergies.
  • Bioventus also expects the combination to generate $20 million of annual pre-tax cost synergies by the end of the second full year following the completion of the transaction.
  • Bioventus anticipates Misonix transaction to be accretive to its adjusted EBITDA.
  • Bioventus plans to fund the cash portion of the acquisition with cash on hand and through financing provided by Wells Fargo.
  • As of April 3, Bioventus had $124.2 million in cash and cash equivalents and $184.7 million in debt obligations.
  • For FY21, Bioventus expects sales of $405 million - $415 million (consensus $400.9 million), up 26% - 29% Y/Y, as against prior guidance of $394 million - $406 million.
  • For Q2, it expects sales of $108 million -$110 million vs. the consensus of $102.62 million.
  • Misonix reported interim Q4 2021 sales of $19.7 million, +43.5% Y/Y.
  • Price Action: BVS shares closed at $17.25 on Thursday, while MSON is trading higher by 9% in premarket to $26.00 on Friday.


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