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Starboard Builds Stake in Merit Medical Systems

  • Activist investor has built a 9% stake in device maker
  • Plans to meet with management on ways to improve performance
Updated on

Activist investor Starboard Value has built a position in Merit Medical Systems Inc. and plans to meet with management to discuss ways to improve the performance of the device manufacturer, according to people familiar with the matter.

The New York-based hedge fund run by Jeff Smith has built a roughly 9% stake in the company and believes it’s undervalued, said the people, asking not to be identified because the matter is private. It’s unclear what sort of changes Starboard may push for.

Starboard confirmed the stake in a regulatory filing Monday. Representatives for Starboard and Merit Medical couldn’t be reached for comment.

Merit Medical, based in South Jordan, Utah, have fallen about 35% over the past year. It cut its financial guidance in July, blaming foreign exchange headwinds, changes in its product mix and its acquisition last year of BridgeWater Medical Inc.