The acquisition price is roughly 52% above Integer's April 29 closing price, before the company announced its strategic review.
Integer's board said after April 29 that it was weighing a possible sale or merger. That review followed a year in which the company's stock had declined. The process ended when KKR signed an agreement/) to acquire the company at a price well above the level where the stock had traded before the review was announced.
Integer produces medical components such as catheters, pacemaker batteries, and implantable ports. After the announcement, Integer's shares rose 2.7% to $124.50 in premarket trading.
Integer's strategic review began after the company's directors said they were exploring a possible sale or merger. The announcement came after April 29 and followed a decline in the company's stock during the previous year. No agreement existed when the review was made public; in the end, the process produced the all-cash deal with KKR.
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During the review, the companies said, "KKR's offer would be funded from KKR's own investment funds and committed debt." The companies put the deal's value at approximately $5.7 billion, or $127 a share.
Integer shareholders will not receive any stock or other security in the transaction. The deal is expected to close before the end of 2026, and Integer would then be owned by KKR's investment funds. After closing, Integer will be privately held and its shares will no longer be publicly traded.
The transaction is designed as a take-private, meaning Integer will stop trading publicly once the acquisition is complete. Its operations will be held by KKR's investment funds rather than by public stockholders.
The acquisition is an all-cash take-private, with KKR using capital from its funds and committed debt. Integer has withdrawn its earlier financial forecast as a result of the acquisition. Integer's second-quarter sales and adjusted profit beat analyst forecasts, and those results were reported at the same time as the takeover announcement.
Integer is a medical-device maker supplying components such as catheters, pacemaker batteries, and implantable ports. It operates a manufacturing facility in Penang, Malaysia; images of the site, including one credited to UCG/Getty Images, accompanied the announcement. The company had been reviewing strategic options since its board said it was weighing a possible sale or merger, a process that started after April 29 and followed a year of declining stock performance. KKR's offer emerged from that review, giving shareholders a fixed cash sum while shifting ownership to KKR's investment funds.
For Integer shareholders, the transaction delivers a fixed cash payment of $127 per share. The price was well above Integer's April 29 stock price and followed the board's decision to review strategic alternatives.
The pending acquisition means Integer will skip its Aug. 6 earnings call and will no longer use its prior full-year guidance.
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