secwatch.observer — SEC 8-K summary
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Issuer:     TACTILE SYSTEMS TECHNOLOGY INC (TCMD)
CIK:        0001027838
Form:       8-K
Filed at:   2021-09-08T23:59:59+00:00
Accession:  0001104659-21-113788
Event type: m_and_a
Sentiment:  positive
Materiality: 0.80
Item codes: 1.01, 2.03, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Tactile Medical acquires AffloVest respiratory therapy business for $80M cash plus up to $20M earn-outs
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- Acquired AffloVest HFCWO vest business from International Biophysics Corp for $80M cash, with up to $20M in earn-outs based on 12-month revenue targets.
- Financed with $55M in borrowings ($30M term loan + $25M revolver draw) under amended Wells Fargo credit facility; cash on hand also used.
- AffloVest 2021 revenue expected ~$17M; deal to add $5-5.5M revenue from Sept 8 to Dec 31, 2021.
- Transaction aligns with 20%+ revenue growth goal, gross margins above 70%, and expanding adjusted EBITDA margins.
- Net leverage expected ~1.4x at year-end 2021 and <1.0x at year-end 2022.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1027838/000110465921113788/0001104659-21-113788-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1027838/000110465921113788/tm2127128d1_8k.htm
  HTML page:      https://secwatch.observer/filing/0001104659-21-113788

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer