# STERIS to Acquire Xodus Medical for $2.1 Billion to Expand Surgical Consumables

- URL: https://stocks.freetheai.org/news/steris-to-acquire-xodus-medical-for-2-1-billion-to-expand-surgical-consumables-543ef8
- Published: 2026-10-12T12:00:00Z
- Category: mergers; sentiment: bullish; impact: high
- Symbols: [NYSE:STE](https://stocks.freetheai.org/symbols/NYSE-STE)
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STERIS plc (STE) announced that its wholly owned subsidiary, STERIS Corporation, has signed a definitive agreement to acquire Xodus Medical, Inc. for $2.1 billion at closing. Net of anticipated cash tax benefits with a present value of approximately $300 million, the purchase price stands at roughly $1.8 billion. The agreement also includes potential earnout payments of up to $150 million based on performance targets in 2028.

The acquisition strengthens STERIS's healthcare product offerings by adding surgical consumables and operating room safety solutions, such as patient positioning systems. Xodus Medical is expected to generate approximately $245 million in revenue and $135 million in adjusted EBIT for calendar 2026. STERIS projects that the deal will contribute positively to revenue growth, gross margins, and adjusted earnings.

STERIS plans to fund the acquisition primarily through debt financing. The transaction is slated to close by December 31, 2026, pending customary closing conditions and regulatory approvals. STERIS expects to update its fiscal 2027 outlook after the transaction closes.

## Key points

- STERIS will acquire Xodus Medical for $2.1 billion, representing a net purchase price of $1.8 billion after tax benefits.
- The deal features up to $150 million in additional earnout consideration linked to specified 2028 performance goals.
- Xodus Medical is projected to deliver $245 million in revenue and $135 million in adjusted EBIT in calendar 2026.
- The transaction will be funded mostly with debt and is targeted to close by December 31, 2026.

## Questions and answers

### How much is STERIS paying to acquire Xodus Medical?

STERIS is paying $2.1 billion at closing, which reduces to a net purchase price of approximately $1.8 billion after factoring in $300 million in expected cash tax benefits. Up to $150 million in additional earnout payments are available based on 2028 performance targets.

### When is the Xodus Medical acquisition expected to close?

The transaction is expected to close by December 31, 2026, subject to customary closing conditions and required regulatory approvals.

### How will STERIS finance the purchase of Xodus Medical?

STERIS plans to finance the acquisition primarily with debt.