ST. LOUIS - Stereotaxis (NYSE: NYSE:STXS), a leader in surgical robotics for minimally invasive endovascular intervention, has announced a definitive share purchase agreement to acquire Access Point Technologies EP (APT), a developer of electrophysiology catheters. The transaction, which is expected to close in the third quarter, includes an upfront payment in Stereotaxis common stock and additional contingent payments based on regulatory and commercial milestones.
APT, based in Minnesota, specializes in the design, manufacture, and commercialization of diagnostic catheters for cardiac ablation procedures, with products available across key global markets. The acquisition aims to enhance Stereotaxis's catheter development and manufacturing capabilities and accelerate its efforts in the treatment of complex arrhythmias and the adoption of robotics in endovascular surgery.
David Fischel, Chairman and CEO of Stereotaxis, stated that the acquisition strategically strengthens the company and was pursued in a financially prudent manner. Steve Berhow, President of APT, expressed enthusiasm for the partnership, noting the opportunity to contribute to the field of Electrophysiology and endovascular robotics.
Stereotaxis anticipates that APT will add approximately $5 million in annual revenue following the acquisition. The company will discuss the acquisition further during its first quarter financial results conference call and webcast.
Stereotaxis is known for its robotic systems, instruments, and information solutions for the interventional laboratory, aiming to enhance patient care, access to minimally invasive therapy, and operating room productivity. The company has a history of treating over 100,000 patients internationally.
The press release includes forward-looking statements regarding the proposed acquisition, its expected financial performance, and potential strategic benefits. However, these statements are subject to risks and uncertainties, including the timing and consummation of the acquisition, competitive responses, and the integration of APT's operations.
This news is based on a press release statement from Stereotaxis, Inc.
InvestingPro Insights
As Stereotaxis (NYSE: STXS) gears up to enhance its position in the field of surgical robotics through the acquisition of Access Point Technologies EP, the financial landscape of the company provides a mixed picture that investors may want to consider.
With a market capitalization of $175.75 million, Stereotaxis is navigating challenging waters with a negative P/E ratio of -7.97, suggesting that the company has yet to turn a profit. This aligns with the InvestingPro Tips indicating that analysts do not expect Stereotaxis to be profitable this year and that the stock has experienced a decline over the past month with a 1 Month Price Total Return of -19.56%.
Still, the company has seen a large price uptick over the last six months, reflected in a 6 Month Price Total Return of 51.39%. This could signal growing investor confidence in the company's strategic moves, such as the recent acquisition. The Price / Book ratio stands at a high of 10.88, which can be a point of caution for value investors, suggesting that the stock may be overvalued compared to the company's book value.
InvestingPro Tips also highlight that while Stereotaxis operates with a moderate level of debt, its liquid assets exceed short-term obligations, which could provide some degree of financial stability as the company pursues its growth strategies.
For a deeper dive into Stereotaxis's financial health and strategic positioning, investors can access additional insights and tips on InvestingPro, where there are currently 9 more tips available for consideration. To take advantage of these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It's worth noting that the next earnings date is set for May 13, 2024, which will likely provide further clarity on the company's financial trajectory post-acquisition. With these insights in mind, investors can better gauge the potential impact of Stereotaxis's strategic moves on its financial performance and market valuation.
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