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Are Medtech Companies Still Interested in M&A?
The medtech space was definitely piping hot with M&A activity earlier this year, but do firms still have that same thirst for deals going into 2019?
December 7, 2018
2 Min Read
Medtech companies are not that “interested” in M&A anymore, according to a survey taken during a recent MD+DI webinar discussing Medtech Trends and Adaptation. Arda Ural, Phd, a partner, transaction advisory services practice for Ernst and Young (EY) was the presenter for the webinar.
When asked whether or not companies expected to pursue M&A in the coming months about 77% of the participants answered no and 23% an answered yes.
This has been a strong year for mergers and acquisitions, as companies have had a lot of cash-on-hand to put to use. Boston Scientific has been one of the busier firms on the M&A side picking up about 10 companies this year.
Earlier this year, MD+DI released a list of the Top 25 Most Attractive Medtech Companies on the M&A Radar. The list came at a time when deal activity was red hot in the sector. In fact, Kalamazoo, MI-based Stryker picked up two firms on the list, K2M for $1.4 billionand Invuity for $190 million.
Stryker had also been rumored to pick up Boston Scientific. However, Stryker shot down such rumors disclosing on a regulatory form that it was not in discussions with Boston Scientific regarding a potential acquisition.
In addition to mergers, many companies have been divesting businesses that don’t necessarily fit their overall plan. Back in April, GE Healthcare announced it would sell its value-based care division to Veritas Capital for about $1.05 billion. A few months later General Electric announced it would spin out GE Healthcare as a standalone company.
There is no doubt there has been significant M&A activity in medtech. Whether that momentum continues in 2019 remains to be seen.
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