Kinetic Concepts (NYSE: KCI) this week announced it has agreed to go private for $68.50 a share with private investors  share include Apax Partners, the Canada Pension Plan Investment Board and the Public Sector Pension Investment Board.

Morningstar raised its fair value estimate to the offer price and advised investors to "jump at this deal" because it values the San Antonio, Texas-based medical appliance and equipment firm at around $45 a share on a stand-along basis.

"We believe this deal's valuation represents a very rosy scenario for KCI, and it looks like a very attractive deal for existing investors," the Morningstar report said. "This turn of events is quite a change of fortunes for KCI."


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