After management announced that the company is being acquired, shares of Corindus Vascular Robotics (CVRS), a medical device company focused on vascular disease, jumped 75% as of 10:30 a.m. EDT on Thursday.
Corindus surprised Wall Street today by announcing that it has agreed to be acquired by Siemens Healthineers (SMMNY -0.03%) for $1.1 billion, or $4.28 per share in cash.
The transaction has already been approved by Corindus' Board of Directors and is expected to close in the fourth quarter of 2019, subject to approval by Corindus stockholders.
Corindus also announced second-quarter earnings:
- Revenue jumped 175% to $4.6 million. Revenue was recorded from nine CorPath GRX Systems sales during the period.
- Gross profit jumped to $1.8 million from $0.5 million in the same period last year.
- Net loss was $10.7 million.
- Cash balance at quarter-end was $31.9 million.
However, the second-quarter numbers don't matter given that it looks as if the buyout has a very good chance of going through.
Corindus' stock has gained more than 400% since the start of the year, so today's buyout caps off an incredible run.
However, the story isn't as rosy for investors who bought at the company's 2014 IPO:
Either way, Corindus is an intriguing medical device company that appeared to have a bright future ahead, so I'm sad to see that it is leaving the public markets. My hope is that the company can thrive now that it has access to Siemens' deep pockets.