MicroPort Announces $680 Million Merger with CRM Cayman, Expanding Cardio‑Medical Footprint

MicroPort Scientific Corporation (HKG: 0853) disclosed that CRM Cayman, MicroPort CardioFlow Medtech Corporation, and MicroPort CardioFlow CRM Limited have entered into a definitive merger agreement. Under the terms, MicroPort CardioFlow will acquire CRM Cayman through a subsidiary‑to‑subsidiary merger, valuing the Cayman‑based entity at USD 680 million in pre‑transaction equity.

Transaction Mechanics

• Merger Structure – CRM Cayman becomes an indirect wholly‑owned subsidiary of MicroPort CardioFlow upon the effective date.
• Share‑Based Consideration – MicroPort CardioFlow will issue new shares to all CRM Cayman shareholders, including the indirect wholly‑owned subsidiary MicroPort International Corp. Limited, at an issue price of HK$1.35 per share.
• Post‑Merger Ownership – CRM Cayman, its subsidiaries, and MicroPort CardioFlow will all remain subsidiaries of MicroPort Scientific, preserving the group’s consolidated structure.

Strategic Rationale

• Diversification of Device Portfolio – The merger broadens MicroPort’s cardiovascular and medical‑technology offerings, adding CRM Cayman’s advanced drug delivery and imaging platforms.
• Synergy Realization – Expected cost savings from shared R&D, regulatory, and supply‑chain functions could enhance margin profiles.
• Market Positioning – Strengthening presence in the U.S. and global markets where CRM Cayman’s technologies have established clinical pipelines.

Financial Impact

• Capital Structure – The share issuance will dilute existing shareholders but is offset by the projected long‑term earnings growth from the combined entity.
• Valuation – At USD 680 million, the transaction reflects a premium on CRM Cayman’s recent earnings, underscoring confidence in the combined growth trajectory.

Outlook

The integration is slated for completion in the first quarter of 2026, with an anticipated launch of joint product lines in 2027. Industry analysts project that the deal will position MicroPort among the top five global cardiovascular device manufacturers by revenue within five years.-Fineline Info & Tech