CONMED (NASDAQ:CNMD) climbed in morning trading after the medical technology company agreed to acquire privately-held SurgiQuest for $265mln on a cash-free, debt-free basis.
Shares rose 8.8% to $41.70 at 11:26 a.m. in New York.
The deal will be financed through a combination of cash and borrowings under a new credit facility.
The transaction is expected to close in the first quarter of 2016.
Founded in 2006 and headquartered in Milford, Connecticut, SurgiQuest develops, manufactures, and markets the AirSeal System (AirSeal), the first integrated access management technology for use in laparoscopic and robotic procedures.
AirSeal consists of a valve-free trocar with continuous pressure sensing and an integrated insufflator and smoke evacuator.
AirSeal has been used in more than 250,000 procedures worldwide. Published clinical data demonstrates that AirSeal leads to shorter procedure times and reduced post-operative pain.