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First-half medtech acquisition value surpasses 2013 total

To contact the writer of this story email Elizabeth Cairns in London at elizabethc@epvantage.com or follow  @LizEPVantage on Twitter

Large medtech companies seem to have found some loose change down the back of the sofa. At the half-year point the combined value of acquisitions closed in the device space has reached $26.8bn, already greater than the total for all of 2013.

This is all the more remarkable because it does not include the still-open megadeals contracted in the second quarter by Medtronic and  Zimmer. Although only 82 medtech M&A transactions have been concluded in the first half, fewer than the 98 seen a year earlier, acquirers are picking their targets carefully, and when they find what they want they are willing to spend substantial amounts to secure it (see tables).

Top 10 takeouts closed in H1 2014
Acquirer Target Deal value ($m)
Thermo Fisher Scientific Life Technologies 13,600
Carlyle Group Ortho-Clinical Diagnostics business of Johnson & Johnson 4,150
Grifols Blood transfusion diagnostics business of Novartis 1,675
Smith & Nephew ArthroCare 1,500
Covidien Given Imaging 860
Ansell BarrierSafe Solutions International 615
bioMérieux BioFire Diagnostics 450
Essilor International Coastal Contacts 393
Cardinal Health AccessClosure 320
MicroPort Scientific OrthoRecon business of Wright Medical Group 290

This newfound willingness to splash the cash is also on display in the biopharma arena as the entire healthcare sector enters a new phase of consolidation (Huge second quarter for M&A sets 2014 on track for record year, July 9, 2014). Many of the most recently announced deals in both pharma and medtech have been at least partly driven by tax savings or the desire to put non-US cash to use, but there are interesting strategic motives at play too – on both the buying and selling sides.

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Josh Sandberg

Josh Sandberg is the President of Ortho Sales Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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