MGC Diagnostics Corp. agreed to be acquired by affiliates of private equity firm Altus Capital Partners for approximately $50.3 million in cash.
Altus will initiate a tender offer for all MGC Diagnostics' shares as soon as possible after Nov. 27 for $11.03 per share. MGC Diagnostics directors and officers representing 8.9% of the outstanding shares have entered into tender support agreements with Altus.
The deal will be funded through equity commitments managed by Altus and senior and mezzanine commitments from third parties. The medical technology company's board unanimously approved the proposition.
The deal is expected to close in late 2017 or early 2018, following which MGC Diagnostics will become a privately held company. The transaction is subject to customary closing conditions, approvals and the tender of a majority MGC Diagnostics shares.
MGC Diagnostics initiated a strategic review of its businesses and assets in January.
Craig-Hallum Capital Group LLC is acting as financial adviser to MGC Diagnostics.