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Shoot for the moon, land among the stars! Buyout Update

In a previous blog post titled “Apollo to the Moon?”, we outlined the market opportunity for Apollo Endosurgery Inc. (APEN) and the benefits for patients using their products. This morning, APEN was acquired by Boston Scientific. APEN is a medical technology company that helps with weight loss and obesity related issues. They offer three products, OverStitch, Orbera and X-Tack, all of which improve patient outcomes and quality of life.

Boston Scientific (BSX) agreed to acquire APEN for $10 per share in an all-cash deal totaling $615 million or a 67% premium to the closing price on Monday. Boston Scientific commented on the deal saying, “this acquisition also enables us to enter a new adjacency – the endobariatric market – and deliver strong, continued growth across our business.” We believe there are more companies in our portfolios that could have similar outcomes. Additionally, it follows our thesis that while the stock market may not always accurately reflect the value of products and services that companies provide, other companies will through acquisitions.

This marks our fifth company acquired this year. APEN is our third largest holding in our individual client accounts and the largest holding in our hedge fund.

Buyout Update
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© 2022 by Grow Funds LLC. Registered Investment Advisor. GROW Funds LLC is a California registered investment advisory firm. Registration does not imply any level of skill or training. Neither the information within this article nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities. Investors should have long-term financial objectives. Past performance is no guarantee of future returns. GROW Funds LLC currently owns APEN shares in its portfolios.



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