Shares of Cogentix Medical Inc. (NASDAQ: CGNT), a small-cap medical-device company, jumped this morning following a merger-agreement announcement. News of the impending acquisition by a subsidiary of Sweden's Investor AB has pushed the stock 14.2% higher as of 10:53 a.m. EDT on Monday.
Investor AB's Laborie Medical Technologies subsidiary develops and markets pelvic-health-related devices, which makes Cogentix's flexible endoscopy products a perfect fit. In order to expand its offerings, Laborie offered a fairly standard 28% premium for all outstanding Cogentix Medical shares.
There probably won't be any room for arbitrageurs to scrape out a short-term gain. Cogentix is too small to register a blip on any antitrust regulator's radar, plus two investors that own a majority of the company have already agreed to tender their shares.
If you want to see how the company performed during its last quarter as Cogentix, you'll have to wait. Management won't be presenting fourth-quarter and full-year results today, as planned previously. The company will file an annual report with the U.S. Securities and Exchange Commission at the end of the month, but there won't be an earnings call or an associated press release.
Cogentix expects the transaction to close in the first half of the second quarter.