Filing Flows › OSI Systems (OSIS) › Takeover & LBO
Is OSI Systems (OSIS) a takeover target?
A leveraged buyout at today's price plus 30% ($259.27 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $134.29 a share (−33% against today's $199.44).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $259.27 | today's $199.44 plus 30% |
| × shares | 16.3 million | |
| = Equity value | $4.2B | |
| + Debt refinanced | $1.0B | |
| − Cash | $302M | |
| = Enterprise value | $4.9B | 18.8× EBITDA of $261M |
| Fees | $98.2M | 2% of the price |
| New debt | $1.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.6B | 71% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.9B | $268M | $110M | $98.7M | $1.3B |
| Year 2 | $1.9B | $276M | $102M | $110M | $1.2B |
| Year 3 | $2.0B | $285M | $93.8M | $123M | $1.1B |
| Year 4 | $2.0B | $293M | $84.4M | $136M | $968M |
| Year 5 | $2.1B | $302M | $74.0M | $150M | $817M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.6B | |
| − Debt left | $817M | |
| = Buyer's equity | $3.7B | |
| Money multiple | 1.05× | on $3.6B put in |
| Buyer's yearly return (IRR) | 0.9% |
Price against return
What the buyer makes at other premiums over today's $199.44; the IRR reaches 20% at $134.29 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $219.38 | 5.1% |
| 20% | $239.33 | 2.9% |
| 30% | $259.27 | 0.9% |
| 40% | $279.22 | −0.9% |
| 50% | $299.16 | −2.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.8B | |
| EBITDA, last 12 months | $261M | 14.5% of revenue |
| Depreciation and amortization | $41.4M | |
| Capital spending | $31.2M | |
| Debt | $1.0B | |
| Cash | $302M | |
| Share price | $199.44 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 2.9% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 20% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, OSI Systems would cost about $259.27 a share, $4.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $223.37 | $3.6B |
| Median | 30% | $259.27 | $4.2B |
| High end (a quarter paid more) | 31% | $261.27 | $4.2B |
OSI Systems' latest quarter
OSI Systems, Q1 FY27: revenue $403M (+5% year over year), operating margin 8.3%, net earnings $24.6M, operating cash flow $37.1M. The chart follows the revenue to costs, profit and cash.
Questions
Is OSI Systems being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy OSI Systems?
A leveraged buyout at today's price plus 30% ($259.27 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $134.29 a share (−33% against today's $199.44).
What would a takeover of OSI Systems cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, OSI Systems would cost about $259.27 a share, $4.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.