Surmodics Acquisition Blocked by FTC Over Antitrust Concerns
Deal News | Mar 07, 2025 | EIN
The U.S. Federal Trade Commission (FTC) has moved to block the intended acquisition of Surmodics, a medical device company, by the private equity firm GTCR. This legal intervention is based on the assertion that the acquisition would create a highly concentrated market for hydrophilic medical device coatings, potentially reducing competition. Surmodics provides specialized technology including drug-coated balloons and thrombectomy systems. GTCR holds a majority stake in Biocoat, which directly competes with Surmodics in this sector. The FTC has cited concerns that the acquisition would diminish competition, violating its Merger Guidelines, since together, GTCR and Surmodics would control over 50% of the market. Legal actions involve seeking a temporary restraining order and preliminary injunction to stop the agreement. Surmodics has expressed its intention to contest the FTC's decision in court, maintaining that the merger would be beneficial and pro-competitive.
Sectors
- Medical Devices
- Private Equity
- Regulatory Compliance
Geography
- United States – The FTC, a U.S. entity, has filed a complaint in a U.S. District Court regarding a proposed acquisition involving a U.S.-based company, Surmodics.
Industry
- Medical Devices – The article discusses the acquisition involving Surmodics, a company that produces medical devices like drug-coated balloons and thrombectomy systems.
- Private Equity – GTCR, a private equity firm, is attempting to acquire Surmodics, indicating the role of investment firms in healthcare M&A activities.
- Regulatory Compliance – The FTC's challenge to the acquisition demonstrates the regulatory environment and compliance issues surrounding mergers in competitive markets.
Financials
- $627 million – The agreed purchase price for GTCR to acquire Surmodics as announced in May 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Surmodics | Target Company | Company | A medical device company based in Eden Prairie, Minnesota, known for its drug-coated balloons and thrombectomy systems. |
| GTCR | Bidding Company | Company | A private equity firm with a focus on healthcare investments that is attempting to acquire Surmodics. |
| Federal Trade Commission (FTC) | Regulatory Body | Government | A U.S. regulatory body challenging the acquisition on grounds of reducing competition within the medical device coatings market. |
| Biocoat | Competitor | Company | A company owned by GTCR that competes directly with Surmodics in the market for outsourced hydrophilic medical device coatings. |