Teleflex Inc. said Tuesday it will buy medical device company NeoTract Inc. in a deal valued at up to $1.1 billion. Under terms of the deal, Teleflex will pay $725 million in cash at the deal’s closing, and up to an additional $375 million if certain sales milestones are achieved. Teleflex plans to fund the acquisition through borrowings under its revolving credit facility. The deal is expected to add slightly to adjusted earnings per share this year. Teleflex’s stock, which was still inactive in premarket trade, had run up 31% year to date through Friday, while the S&P 500 has gained 10.6%.
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