Getinge Completes Deal for Paragonix

Getinge announced that its $477 million deal to acquire Paragonix Technologies has been completed.
 
The acquisition, first announced last month, adds a portfolio of organ transport products and services to Getinge’s portfolio.
 
Getinge paid about $253 million in cash when the transaction was completed on a cash and debt-free basis. Earn-out payments are anticipated to be paid between 2024 and 2026 if certain regulatory and financial performance milestones are achieved—these payments may exceed $224 million in aggregate.
 
The acquisition is expected to have a slightly negative impact on Getinge’s adjusted earnings per share (EPS) in 2024. The company said it predicts a positive contribution on adjusted EPS beginning in 2028.

More on the deal’s rationale

The transplant market is predicted to experience double-digit growth and top $10 billion in 2034, driven by volume increase due to demand and transition from traditional methods toward new tech.
 
Paragonix’s organ preservation devices and service outgrew the market significantly in 2023 with 136% growth. The company has a strong offering in the heart and lung segments—its organ preservation device for hearts has been shown to reduce severe complications by over 50% and reduce two-year mortality by 43% compared to traditional methods of transport and preservation.
 
The company also recently launched offerings for the abdominal segment.