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Medtech Hasn’t Abandoned the Thought of M&A yet in 2018

Sonic Healthcare revealed it has entered into an agreement to acquire Aurora Diagnostics for $540 million.

The year might be rapidly ending, but there’s still enough time for medtech companies to do some fairly large deals before 2019. Sonic Healthcare is taking a plunge into M&A before year’s end and picking up Aurora Diagnostics for $540 million.

The deal would give Australia-based Sonic Healthcare a stronger foothold in the U.S. Palm Beach FL-based Aurora Diagnostics specializes in pathology services. The acquisition would also allow pathologists provide critical mass for growth in the anatomical and clinical pathology markets, both organically and via additional acquisitions

Sonic said it expects the deal to be about 3% earnings per share.

2018 has been the year of the tuck-in deals. It is true that there were some mega-mergers like Illumina acquiring PacBio for $1.2 billion and Roche paying $2.4 billion for Foundation Medicine , but for most part companies just rounded out portfolios with smaller deals.

Late last month, during a webinar titled Medtech Trends and Adaptation, MD+DI conducted a survey of how many companies were still interested in last minute deals. Nearly 77% said they weren’t interested in any more M&A – which came as a shock considering the busy season this year. Only 23% said of responders said they were interested.

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