Merit Medical Acquires View Point Medical, Inc., expanding the Merit Therapeutic Oncology Portfolio (Form 8-K)

Merit Medical Acquires View Point Medical, Inc., expanding the Merit Therapeutic Oncology Portfolio

SOUTH JORDAN, Utah, April 1, 2026 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a global leader of healthcare technology, today announced it has acquired View Point Medical, Inc. (View Point). Through a merger transaction, View Point is now a wholly-owned subsidiary of Merit. View Point, located in Carlsbad, California, manufactures the OneMark® Detection Imaging System and OneMark Tissue Markers. The aggregate transaction consideration, including the assumption of View Point liabilities, is approximately $140 million. Of that amount, $90 million was paid in cash at closing and two deferred payments of $25 million each are scheduled to be paid not later than the first and second anniversaries of the closing date, respectively.

"This acquisition expands Merit's portfolio of therapeutic oncology products dedicated to the accurate diagnosis and localization of breast and soft tissue tumors," said Martha G. Aronson, Merit's President and Chief Executive Officer. "Merit has built a market leadership position in wire-free, non-radioactive breast localization procedures. This leadership is built upon our SCOUT® platform, which utilizes the precision and accuracy of radar. View Point's unique ultrasound-enhanced technology offers a highly innovative solution to localize more lesions at the time of biopsy - representing an estimated 1.3 million procedures annually in the United States alone. We look forward to discussing this acquisition in further detail on our first quarter investor conference call." Merit's first quarter investor call is scheduled for April 30, 2026.

The OneMark System is US Food and Drug Administration (FDA) cleared for its intended use and consists of a surgical detection console and ultrasound-enhanced tissue markers. After placement, the tissue markers are designed to be visible across commonly used imaging modalities and engineered to minimize interference with imaging studies. The combination of SCOUT and OneMark provides physicians with more localization options during the initial diagnostic biopsy, which may reduce the need for a separate procedure to mark the location of the tumor prior to surgery.

"The acquisition of View Point reinforces Merit's mission to help reduce the burden that breast cancer places on patients and their loved ones," said Adam Smith, Merit's Chief Commercial Officer. "As treatment protocols evolve, the suspicious area is often most visible at the time of biopsy. Localizing these areas early in a patient's cancer journey can help physicians plan treatment and may help reduce the need for additional localization procedures."

FINANCIAL SUMMARY

From the acquisition effective date of April 1, 2026 through December 31, 2026, the acquisition is projected to contribute revenue in the range of $2 million to $4 million and to dilute Merit's previously forecasted non-GAAP earnings per share by approximately $0.05, inclusive of approximately $2.0 million of lower interest income on cash balances used for the total purchase consideration and excluding approximately $5.3 million of non-cash and non-recurring transaction-related expenses, and to be dilutive to Merit's full-year 2026 GAAP net income and GAAP earnings per share.

For the twelve months ending December 31, 2027, the acquisition is projected to contribute revenue in the range of $14 million to $16 million and to be accretive to non-GAAP earnings per share. Sales of View Point's OneMark System are projected to grow at least 20% per year, with 70% non-GAAP gross margins and accretive to non-GAAP operating margins. The acquisition is projected to be dilutive to Merit's GAAP net income and GAAP earnings per share in 2027 and accretive thereafter.

NON-GAAP FINANCIAL MEASURES

Merit generally does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures (other than revenue) because Merit is unable to predict with reasonable certainty the financial impact of various items which could impact Merit's future financial results, such as expenses attributable to acquisitions or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, performance-based stock compensation expenses, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings, and changes in governmental or industry regulations. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, Merit is unable to address the significance of the unavailable information, which could be material to future results. Specifically, Merit is not, without unreasonable effort, able to reliably predict the impact of these items, and Merit believes inclusion of a reconciliation of these forward-looking non-GAAP measures to their GAAP counterparts could be confusing to investors or cause undue reliance. Only information on the impacts to such measures from the proposed acquisition is included in this release. A reconciliation of the impacts on such financial measures to the impacts on their GAAP counterparts is not available without unreasonable effort.

ADVISORS

Piper Sandler & Co. acted as financial advisor to Merit. Baker & McKenzie LLP served as legal advisor to Merit.

ABOUT MERIT MEDICAL

Founded in 1987, Merit is engaged in the development, manufacture, and distribution of proprietary medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. Merit serves customers worldwide with a domestic and international sales force and clinical support team totaling more than 800 individuals. Merit employs approximately 7,600 people worldwide.