
Zynex Announces Strategic Alternative Process Aimed at Driving Shareholder Value
10-31-23 (by: Scott Gleason) Medical technology company, Zynex, Inc. with product lines in patient rehabilitation and patient monitoring has commenced a strategic review process aimed at maximizing shareholder value. The Board of Directors in collaboration with its advisors, will comprehensively assess potential strategic options. These possibilities encompass a spectrum of alternatives, including take-private offers, sales, mergers, business combinations, divestitures, recapitalizations, or other strategic transactions. Furthermore, Zynex may choose to continue its operations as an independent, publicly-traded company. The Board has stated that the ultimate objective of this review process is to bolster shareholder value and the company’s position in the medical technology sector. Zynex has enlisted the services of Cantor Fitzgerald & Co. as its financial advisor and Goodwin Procter LLP as its legal advisor.
Zynex’s decision to explore strategic alternatives comes at a time when the company is demonstrating strong financial performance. Over the past four years, the company has reported over 170% revenue growth. It has also seen an improvement in profit margins and operates with positive cash flow. The company recently reported its 3Q23 financial results with strong growth, multiple new product launches, and sales force expansion.
Thomas Sandgaard, President and CEO of Zynex, voiced confidence in the company’s financial and operational strength. He remarked, “The Board believes that it is in the interests of our stockholders to explore strategic alternatives. Regardless of the outcome, the entire organization will remain committed to growing our business and improving the lives of our patients.”