Core Insights - GTCR is set to acquire Surmodics, a company specializing in medical device coatings and diagnostics components, for $627 million, with plans to finalize the deal by the end of 2024 [3][7] - The FTC has raised concerns about the acquisition leading to a concentrated market for outsourced hydrophilic coatings, as Surmodics and GTCR's Biocoat together control over 50% of the market [4][5] Group 1 - The FTC challenged the acquisition in March 2024, citing potential elimination of significant competition in the hydrophilic coatings market [3][4] - Two states joined the FTC's challenge in April, indicating broader regulatory scrutiny [3] - GTCR attempted to address these concerns by agreeing to divest part of Biocoat's hydrophilic coatings business to Integer, a medical device contract development organization [5] Group 2 - The FTC criticized the divestiture as inadequate, claiming it would not sufficiently enable new entrants to compete in the market [5] - Despite the FTC's objections, a judge denied the request for a preliminary injunction to block the acquisition, suggesting that the divestiture could alleviate competition concerns [5][7] - Surmodics' CEO expressed optimism about the ruling, viewing it as a significant step toward completing the merger [7]