Medtronic Swoons over HeartWare
Medtronic plc (NYSE: MDT) kept up its busy acquisition pace, notching its fifth deal in 2016. The target is HeartWare International (NASDAQ: HTWR), developer and maker of miniaturized implantable heart pumps or ventricular assist devices (VAD) for the treatment of advanced heart failure. Its lead product is the HVAD® System, featuring the world’s smallest full-support ventricular assist device. Medtronic will pay $58.00 per share in cash for all outstanding common stock in HeartWare, for a transaction value of $1.1 billion. This acquisition will expand Medtronic’s portfolio of diagnostic tools, therapies and services for patients suffering from heart failure. The transaction is... Read More »Zimmer Biomet Bolsters Its Spine Business
Zimmer Biomet Holdings, Inc. (NYSE: ZBH) strengthened its spinal business with the $1.0 billion acquisition of LDR Holding Corporation (NASDAQ: LDRH). Founded in France in 2000, LDR designs and commercializes various surgical technologies for the treatment of patients suffering from spine disorders. Its primary product offerings are the Mobi-C cervical disc replacement (CDR) device and MIVo portfolio to support lumbar and cervical fusion procedures, both of which complement Zimmer Biomet’s current portfolio. The CDR segment is one of the fastest growing within the $10 billion spine industry. Combined, Zimmer Biomet and LDR create a differentiated and comprehensive Spine portfolio.... Read More »Medtronic’s Surgical Strikes
The Irish medical device maker Medtronic plc (NYSE: MDT) announced two strategic investments on May 18. The first wasn’t an acquisition, but could be a precursor to one. The company agreed to buy 15 next-generation robotic spinal systems from Israel-based Mazor Robotics Ltd. In addition, Medtronic will purchase newly issued securities representing 4% of Mazor’s outstanding shares for $11.9 million, and will have the opportunity to buy another 6%, plus a further 5%, in future allotments. The two companies together will promote Mazor’s spinal system, which helps surgeons plan and execute surgeries. If the initial phase of the agreement meets expectations by the end of... Read More »Abbott’s $30.7B Deal Boosts Medical Device M&A
Medical device deals are back in fashion. In the first four months of 2016, 41 deals were announced in this sector, compared with just 30 for the comparable time period in 2015. Spending on deals in this sector has already hit $42.7 billion, compared with $5.7 billion in the first four months of 2015. The largest by far this year is Abbott’s (NYSE: ABT) announcement on April 28 that it would spend $30.7 billion to acquire Minneapolis-based St. Jude Medical, Inc. (NYSE: SJM). St. Jude shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of approximately $85 per share, and a transaction equity value of $25 billion. Add in... Read More »Medical Devices Deals, 2006 to 2015
Mergers and acquisitions in the medical device sector hit a rough patch in 2013. That’s when the 2.3% excise tax, mandated in the Affordable Care Act, went into effect, and the change was felt almost immediately. In 2015, the tax was lifted for a period of two years, but deal making still hasn’t gone back to the heady days of 2011. Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
