NEW YORK (TheStreet) -- Shares of Tornier N.V. (TRNX) - Get Taronis Technologies, Inc. Report are soaring this morning, up 17.09% to $28.16, after the Dutch medical device maker announced that it agreed to acquire and merge with specialty orthopedic company Wright Medical Group Inc (WMGI) - Get Wright Medical Group NV Report in an all stock deal valued at about $3.3 billion.
Under the deal, one outstanding share of Wright common stock will be exchanged for 1.0309 ordinary shares of Tornier.
Memphis, TN-based Wright Medical Group said in a statement that the deal has been unanimously approved by the boards of both companies, with the transaction expected to close in the first half of 2015.
Shares of Wright Medical Group are lower by 0.46% to $31.50 today.
Separately, TheStreet Ratings team rates TORNIER NV as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TORNIER NV (TRNX) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TRNX's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- TRNX's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
- TORNIER NV has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TORNIER NV reported poor results of -$0.80 versus -$0.54 in the prior year. This year, the market expects an improvement in earnings (-$0.55 versus -$0.80).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, TORNIER NV's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$3.26 million or 346.56% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: TRNX Ratings Report