MedTech Industry Surpasses $42 Billion in R&D Investment, Drives Growth Through Strategic M&A Deals

The Growth of the MedTech Industry: Unveiling 100 Strategic Deals Shaping the Future

 

The MedTech industry, renowned for its life-saving innovations and advancements in patient care, has continuously invested heavily in research and development, surpassing $42 billion in 2022 alone. The COVID-19 pandemic has further accelerated the demand for new diagnostics and research equipment, leading to robust growth in the sector. Companies have increasingly turned to mergers and acquisitions (M&A) to navigate these changes and bolster financial performance. Strategic priorities include expanding product portfolios, advancing therapeutic solutions, global market expansion, and achieving economies of scale. Despite varying deal sizes, M&A activity remains steady, underpinned by consistent industry drivers. Understanding premiums and value creation will be pivotal for success as firms plan future M&A strategies.

 

Deals of 2024

 

 

 

• J&J – Shockwave

 

Transaction Value: $13.1 billion

Description: Johnson & Johnson and Shockwave Medical, Inc. ("Shockwave") have announced a definitive agreement where Johnson & Johnson will purchase all outstanding shares of Shockwave for $335.00 per share in cash. This transaction represents an enterprise value of approximately $13.1 billion, including cash acquired.

 

 

• Illuminia – Grail 

 

Transaction Value:  $750 million

Description: Illumina will maintain a minority share of 14.5% in the company

 

 

• BD – Edward Lifesciences

 

Transaction Value: $4.2 billion

Description: Becton Dickinson a leading global medical technology company, and Edward Lifesciences announced a definitive agreement under which BD will acquire Edward’s Critical Care Unit a global leader in advanced monitoring solutions for $4.2 billion in cash, unlocking new value creation opportunities and enhancing BD’s portfolio. 

 

 

• Labcorp – Invitae 

 

Transaction Value: $239 million

Description: Labcorp will acquire select assets of Invitae on a going concern basis for $239 million in cash consideration, plus other non-cash consideration. Invitae and Labcorp anticipate the sale will be completed in the third quarter of 2024, subject to customary closing conditions and applicable regulatory approvals.

 

 

• Labcorp – Bioreference Health (Opko Health)

 

Transaction Value: $237.5 million

Description: Labcorp to acquire clinical diagnostics, reproductive and women’s health testing assets from Bioreference Health, a subsidiary of Opko Health, for $237.5 million. Labcorp is acquiring patient service centers and certain customer contracts and operating assets related to Bioreference’s reproductive and women’s health business.

 

Deals of 2023

 

 

 

• Danaher – Abcam 

 

Transaction Value: $5.7 billion

Description: Abcam plc, a global leader in life science research tools, announced today that it has agreed to be acquired by Danaher Corporation. Danaher will purchase all outstanding shares of Abcam for $24.00 per share in cash, as part of the definitive agreement.

 

 

• HIG Capital – Zimmer Biomet

 

Transaction Value: $375 million

Description: H.I.G. Capital has agreed to purchase ZimVie's spine business for $375 million, as outlined in a press release. The acquisition includes ZimVie’s spine, motion preservation, and EBI bone healing technologies.

 

 

• Integra Lifesciences – J&J’s Acclarent

 

Transaction Value: $275 million

Description: Integra LifeSciences Holdings Corporation, a prominent player in medical technology, announced that it has signed a definitive agreement to purchase Acclarent, Inc. from Ethicon, Inc., a Johnson & Johnson MedTech company. The acquisition will involve $275 million in cash at closing, with customary adjustments to the purchase price, and an additional $5 million contingent upon achieving specific regulatory milestones.

 

 

• J&J – Laminar

 

Transaction Value: $400 million

Description: Johnson & Johnson MedTech announced the finalization of the acquisition of Laminar, Inc., a privately-held medical device company specializing in the treatment of non-valvular atrial fibrillation (AFib) by eliminating the left atrial appendage (LAA). Johnson & Johnson MedTech acquired Laminar for an initial payment of $400 million, which is subject to standard adjustments. Further potential payments based on clinical and regulatory milestones are anticipated in 2024 and beyond.

 

 

• Thermo Fisher Scientific – Olink Holding

 

Transaction Value: $3.1 billion

Description: Orion Acquisition AB, to acquire all of the outstanding common shares and all of the outstanding American Depositary Shares, each representing one Share (“ADSs”), of Olink Holding AB for $26.00 per Share and per ADS, in cash.

 

 

• Deals of 2022

 

 

 

• J&J – Aboimed

 

Transaction Value: $16.6 billion

Description: Johnson & Johnson will acquire through a tender offer all outstanding shares of Abiomed, for an upfront payment of $380.00 per share in cash, corresponding to an enterprise value of approximately $16.6 billion which includes cash acquired. Abiomed shareholders will also receive a non-tradeable contingent value right (CVR) entitling the holder to receive up to $35.00 per share in cash if certain commercial and clinical milestones are achieved. 

 

 

• Quidel – Ortho Clinical Diagnostic

 

Transaction Value: $6 billion

Description: Under the terms of the agreement governing the transaction, Ortho shareholders will receive $7.14 in cash and 0.1055 shares of QuidelOrtho common stock for each Ortho common share. Quidel stockholders will receive one share of QuidelOrtho common stock for each share of Quidel common stock.

 

 

• R1 RCM – Cloudmed

 

Transaction Value: $4.1 billion

Description:  R1 RCM used $96.4 million in cash from operations in the quarter, primarily related to transaction costs related to the Cloudmed acquisition. Net debt at the end of June was $1.65 billion, up approximately $1 billion from March due to debt incurred as part of the Cloudmed acquisition. 

 

 

• Stryker – Vocera Communications

 

Transaction Value: $3.1 billion

Description: cash tender offer for all of the outstanding shares of common stock of Vocera for $79.25 per share representing approximately 85% of the outstanding shares of Vocera common stock, were validly tendered pursuant to the tender offer and not properly withdrawn prior to the expiration time.

 

 

• Coloplast – Atos

 

Transaction Value: $2.4 billion

Description: Organic revenue growth expected around 7% at constant exchange rates. 

 

 

• ICU Medical – Smiths Medical

 

Transaction Value: $2.4 billion

Description: Smiths will receive at closing 2.5 million newly issued shares of ICU Medical common stock, currently valued at approximately $500 million, and $1.85 billion in cash along with ICU Medical assuming certain liabilities. Smiths is also eligible to receive a contingent earn-out consideration of $100 million in cash.

 

 

• Boston Scientific – Baylis Medical

 

Transaction Value: $1.75 billion

Description: The transaction consists of an upfront payment of $1.75 billion, and is expected to be approximately one cent accretive to adjusted earnings per share in 2022 and increasingly accretive thereafter. 

 

 

• BD – Parata 

 

Transaction Value: $1.5 billion

Description: Parata provides BD access to a new $600 million pharmacy automation market segment that is expected to grow approximately 10% annually to $1.5 billion in the U.S. alone over 10 years.

 

 

• Deals of 2021

 

 

 

• Thermo Fisher – PPD

 

Transaction Value: $17.4 billion

Description: the transaction is expected to contribute $1.50 to Thermo Fisher's adjusted earnings per share in 2022. Thermo Fisher continues to expect to realize total synergies of approximately $125 million by year three following close, consisting of approximately $75 million of cost synergies and approximately $50 million of adjusted operating income benefit from revenue-related synergies. In connection with the acquisition, Thermo Fisher will also assume approximately $3.0 billion in net debt of PPD. 

 

 

• Siemens Healthineers – Varian Medical Systems

 

Transaction Value: $16.4 billion

Description: Siemens Healthineers will acquire all outstanding shares of Varian for $177.50 per share in cash, representing a premium of approximately 42% to the 30-day volume weighted average closing price of Varian's common stock as of July 31, 2020.

 

 

• Baxter – Hillrom

 

Transaction Value: $12.5 billion

Description: Baxter paid $156.00 in cash for each outstanding share of Hillrom common stock for a purchase price of $10.5 billion (based on Hillrom share counts at closing). Including the assumption of Hillrom's outstanding debt obligations, the enterprise value of the transaction is approximately $12.5 billion.

 

 

• Danaher – Aldevron 

 

Transaction Value: $9.6 billion

Description:  Danaher entered into a definitive agreement to acquire privately-held Aldevron, for a cash purchase price of approximately $9.6 billion. Danaher expects to finance the acquisition using cash on hand and/or proceeds from the issuance of commercial paper.

 

 

• Illumina – Grail

 

Transaction Value: $8 billion

Description: In Illumina's acquisition of GRAIL, the payment included cash, Illumina common stock, and either contingent value rights (CVRs) or additional Illumina stock. GRAIL shareholders, excluding Illumina, received about $3.1 billion in cash, with a total cash payout of $3.5 billion. Illumina also spent $0.4 billion on tax withholding for shares issued to GRAIL employees. The stock portion was based on Illumina's 20-day volume-weighted average price, issuing a fixed 11.3 million shares if the price was above $399, which it was. GRAIL shareholders could choose CVRs, offering annual payments from GRAIL-related revenues for 12 years: 2.5% of the first $1 billion and 9% of revenue above $1 billion. Approximately 47% of GRAIL equity opted for CVRs. Alternatively, shareholders could receive additional Illumina stock, capped at $850 million if the price was below $280, which it wasn't. In total, Illumina issued about 9.8 million shares for the acquisition, accounting for base and additional stock, and adjustments for shares due to Illumina and GRAIL employee settlements.

 

 

• Datavant – Ciox Health

 

Transaction Value: $7 billion

Description: Datavant, the leader in helping healthcare organizations securely connect their data, and Ciox Health, the leader in clinical data exchange, today announced that they have signed a definitive agreement to merge the two companies in a transaction valued at $7.0 billion.

 

 

• PerkinElmer – BioLegend

 

Transaction Value: $5.25 billion

Description:  PerkinElmer, Inc. (NYSE: PKI) a global leader committed to innovating for a healthier world, today announced it has completed its acquisition of BioLegend, a leading, worldwide provider of life science antibodies and reagents for a total consideration of approximately $5.25 billion.  it is expected that BioLegend will contribute an incremental $380 million of revenue and $0.30 of adjusted earnings per share accretion to PerkinElmer in fiscal year 2022

 

 

• Steris – Cantel

 

Transaction Value: $4.6 billion

Description: STERIS will acquire Cantel in a cash and stock transaction valued at $84.66 per Cantel common share, based on STERIS’s closing share price of $200.46 on January 11, 2021. This represents a total equity value of approximately $3.6 billion and a total enterprise value of approximately $4.6 billion, including Cantel’s net debt and convertible notes.

 

 

• VG Acquisition Corp – 23andMe

 

Transaction Value: $3.5 billion

Description: The transaction is expected to deliver up to $759 million of gross proceeds through the contribution of up to $509 million of cash held in VG Acquisition Corp.’s trust account and a concurrent $250 million private placement (PIPE) of common stock, priced at $10.00 per share. Sir Richard Branson, Founder of the Virgin Group, and Anne Wojcicki, CEO and Co-Founder of 23andMe, are each investing $25 million in the PIPE and are joined by leading institutional investors, including funds managed by Fidelity Management & Research Company LLC, Altimeter Capital, Casdin Capital and Foresite Capital. 

As part of the transaction, 23andMe’s existing equity holders will roll 100% of their equity into the combined company. Assuming no public shareholders of VG Acquisition Corp. exercise their redemption rights, 23andMe will be capitalized with up to $984 million in cash to fund operations and support new and existing growth initiatives.

 

 

• CA Healthcare – Lumira DX 

 

Transaction Value: $3 billion

Description: The new transaction terms adjust the pro forma enterprise value of LumiraDx (including CAHC) from $5 billion to $3 billion excluding any cash held in trust by CAHC. As previously announced, the combined group is expected to receive approximately $115 million of cash held in trust, assuming no redemptions of CAHC’s existing public stockholders.

 

 

• Top Deals of 2020

 

 

 

• Danaher – GE Lifesciences

 

Transaction Value: $21.4

Description: As part of Danaher, the new business will be called Cytiva.

 

 

• Teladoc – Livongo

 

Transaction Value: $18.5 billion

Description: Livongo shareholders will receive 0.5920x shares of Teladoc Health plus cash of $11.33 for each Livongo share (including the special dividend declared by Livongo). 

 

 

• Stryker – WrightMedical

 

Transaction Value: $5.4 billion

Description: the cash tender offer for all outstanding ordinary shares of Wright Medical for $30.75 per share, without interest and less applicable withholding taxes, by Stryker B.V., an indirect, wholly owned subsidiary of Stryker

 

 

• Invitae – Archer DX

 

Transaction Value: $1.4 billion

Description: Invitae acquired ArcherDX with 30 million shares of Invitae common stock and $325 million in cash, plus up to 27 million more shares based on milestones. Invitae's issued shares are under a 75-day lock-up period. Invitae also secured a $135 million loan from Perceptive Credit Opportunities Holdings III and issued warrants for 1 million shares of Invitae stock. Additionally, Invitae sold $275 million of common stock to accredited investors in a private placement.

 

 

• Dentsply Sirona – Byte 

 

Transaction Value: $1.04 billion

Description: DENTSPLY SIRONA Inc. (“Dentsply Sirona”), and Byte, a rapidly growing clear aligner company, announced that Dentsply Sirona acquired Byte in an all-cash deal for $1.04 billion.

 

 

• Steris – Key Surgical

 

Transaction Value: $850 million

Description: STERIS now expects Key Surgical to contribute about 35% more to revenue and adjusted earnings per diluted share in the fiscal year than originally expected, with the deal closing on December 31, 2020. Consequently, the company anticipates approximately $55 million in revenue and $0.13 in adjusted earnings per diluted share from the Key Surgical acquisition in fiscal 2021, assuming no significant COVID-19 disruptions.

 

 

• Sartorious – Danaher

 

Transaction Value: $825 million

Description: The businesses acquired by Sartorius generated around $170 million in revenue in 2019 and include a range of laboratory and bioprocessing technologies that complement the existing portfolios of both Sartorius divisions.

 

 

• Altaris – Kindeva

 

Transaction Value: $641 million

Description: Altaris Capital Partners, LLC (“Altaris”) announced today that it has completed the acquisition of Kindeva Drug Delivery, formerly known as 3M Drug Delivery Systems, from 3M Company for total consideration of $650 million.

 

 

• Lantheus Holdings – Progenics

 

Transaction Value: $600 million

Description: Under the Amended Agreement, Lantheus to acquire all outstanding shares of Progenics common stock at an increased exchange ratio, where Progenics stockholders will receive 0.31 shares of Lantheus stock for each Progenics share, up from 0.2502 in the Original Agreement. Additionally, stockholders will receive a non-tradeable contingent value right (CVR), payable in cash if Progenics' imaging agent PyL exceeds $100 million in sales in 2022 and $150 million in 2023. This exchange ratio increase raises Progenics stockholders' ownership in the combined company to 40%, up from 35% in the Original Agreement.

 

 

• Deals of 2019

 

 

 

• 3M – Acelity

 

Transaction Value: $6.725 billion

Description: The acquisition, valued at approximately $6.7 billion including debt, is subject to closing and adjustments. 3M estimates it will reduce earnings per share by $0.35 in the first 12 months due to financing costs. However, excluding purchase accounting adjustments and one-time transaction and integration expenses, 3M expects the acquisition to increase earnings per share by $0.25 over the same period.

 

 

• J&J – Auris Health 

 

Transaction Value: $5.8 billion

Description: The J&J acquisition of Auris Health in 2019 was an all-cash deal. Johnson & Johnson agreed to pay approximately $3.4 billion in cash upfront for Auris Health, with additional payments of up to $2.35 billion contingent on achieving certain milestones.

 

 

• Veritas Capital and Elloit Management – Athena 

 

Transaction Value: $5.7 billion

Description: Veritas Capital Fund Management LLC and Elliott Management Corp. have agreed to acquire athenahealth Inc. for $5.5 billion in cash, valuing the healthcare software maker at approximately $135 per share. As of November 9, the company's stock closed at $120.35.

 

 

• Boston Scientific – BTG

 

Transaction Value: $4.2 billion

Description: After acquiring BTG in 2019 for approximately $3.7 billion net of cash on hand, and following the close of this transaction, we will have divested the two BTG non-medical device portions – Pharmaceutical Licensing royalties in the fourth quarter of 2019 and Specialty Pharmaceuticals announced today – for more than $1.0 billion in net proceeds," said Jeff Mirviss, executive vice president and president, Peripheral Interventions, Boston Scientific.

 

 

• Colfax – DJO Global

 

Transaction Value: $3.15 billion

Description: Colfax Corporation (“Colfax”), a leading diversified technology company, announced that it has completed the previously announced acquisition of DJO Global, Inc. from an investor group led by private equity funds managed by Blackstone for $3.15 billion.

 

 

• Exact Sciences – Genomic Health

 

Transaction Value: $2.8 billion

Description: For each share of Genomic Health common stock they own, Genomic Health stockholders will receive $27.50 in cash and $44.50 in shares of Exact Sciences stock, subject to a 10% collar centered on Exact Sciences' volume-weighted average price for the 45 trading days ended July 26, 2019.

 

 

• Fortive – J&J

 

Transaction Value: $2.8 billion

Description: Johnson & Johnson has finalized the sale of its Advanced Sterilization Products (ASP) business to Fortive Corporation for around $2.8 billion. This includes $2.7 billion in cash from Fortive and $0.1 billion in retained net receivables. ASP, known for its infection prevention solutions, generated approximately $800 million in net revenue in 2018.

 

 

• Fresenius Medical Care – NxStage Medical

 

Transaction Value: $2 billion

Description: The acquisition will allow Fresenius Medical Care to utilize its strengths in manufacturing, supply chain management, and marketing across its dialysis products, services, and Care Coordination businesses in a setting that requires less labour and capital investment.

 

 

• Agilent Technologies – BioTek Instruments

 

Transaction Value: $1.165 billion

Description: Agilent Technologies announced that it signed an agreement to acquire BioTek Instruments, a life science instrumentation company for $1.165 billion. The deal will bring annual revenue for Agilent’s cell analysis business to more than $250 million, according to a July 11, 2019 press statement.

 

 

• Astrog and Montagu Private Equity – Nemera

 

Transaction Value: $1.15 billion

Description: Montagu supported Nemera’s operational leadership to optimise core manufacturing operations with a focus on building operational control, creating a scalable platform for profitable growth, and optimising margins.

 

 

• Deals of 2018

 

 

 

• Becton Dickinson (BD) – C.R. Bard

 

Transaction Value: $24 billion

Description: BD (Becton, Dickinson and Company), a leading global medical technology company, and C. R. Bard, Inc., a medical technology leader in the fields of vascular, urology, oncology and surgical specialty products, announced today a definitive agreement under which BD will acquire Bard for $317.00 per Bard common share in cash and stock, for a total consideration of $24 billion.

 

 

• Boston Scientific – BTG

 

Transaction Value: $4.2 billion

Description: The deal has received unanimous approval from both Boston Scientific and BTG's boards of directors. According to the agreement, holders of BTG's common shares will be paid 840 pence per share in cash. The total cash payment for all of BTG's equity amounts to about £3.3 billion or $4.2 billion.

 

 

• J&J – Auris Health

 

Transaction Value: $3.4 billion

Description: While the specific terms of the deal were not publicly disclosed, it was reported that J&J paid approximately $3.4 billion in cash upfront for Auris Health, with additional payments of up to $2.35 billion contingent on achieving certain milestones.

 

 

• Medtronic – Mazor Robotics

 

Transaction Value: $1.7 billion

Description: As per the acquisition agreement announced on September 20, 2018, Mazor shareholders will receive $58.50 per American Depository Share or $29.25 per ordinary share in cash. The overall value of the deal is stated to be $1.7 billion, with a net value of $1.3 billion after considering Medtronic's current stake in Mazor and the cash acquired. Medtronic's acquisition of Mazor is regarded as one of the major orthopedic deals finalized in 2018.

 

 

• Stryker – K2M Group Holdings

 

Transaction Value: $1.4 billion

Description: Stryker has announced a definitive merger agreement to purchase all of K2M Group Holdings, Inc.'s outstanding common stock at $27.50 per share, totalling an equity value of around $1.4 billion. Founded in 2004, K2M has become a significant player in the spinal market, which is estimated to be worth approximately $10 billion.

 

 

• Siemens Healthineers – Corindus Vascular Robotics 

 

Transaction Value: $1.1 billion

Description:  Siemens Healthineers AG completed the acquisition of 100 percent of Corindus Vascular Robotics, Inc. effective October 29, 2019. Prior to the closing of the acquisition, Corindus held a shareholders’ meeting on October 25, 2019, at which 87.5 percent of their stockholders approved the acquisition.

 

 

• Philips – EPD Solutions

 

Transaction Value: $292 million

Description: Philips will acquire EPD for an upfront cash consideration of EUR 250 million and deferred, milestone dependent payments. In connection with these contingent payments, the company expects to recognize a provision of approximately EUR 210 million [3] upon completion of the transaction.

 

 

• Top deals of 2017

 

 

 

• Cardinal Health – Medtronic 

 

Transaction Value: $6.1 billion

Description: Cardinal Health announced that it has completed the acquisition of Medtronic's Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business for $6.1 billion. The acquisition was funded with a combination of $4.5 billion in new senior unsecured notes, existing cash and borrowings under our existing credit arrangements.

 

 

• Becton Dickinson (BD) – C.R. Bard

 

Transaction Value: $24 billion

Description: upon completion of the acquisition, Bard became a wholly owned subsidiary of BD, and each outstanding share of Bard common stock was converted to the right to receive $222.93 in cash without interest and (2) 0.5077 of a share of BD common stock.

 

 

• J&J – Actelion 

 

Transaction Value: $30 billion

Description: Johnson & Johnson has finalized the purchase of Actelion Ltd for about $30 billion in cash. The acquisition was carried out through a cash-based public tender offer by Johnson & Johnson's Swiss arm, Janssen Holding GmbH, to acquire all publicly traded shares of Actelion Ltd at $280 per share in U.S. dollars. Actelion is now integrated into the Janssen Pharmaceutical Companies under Johnson & Johnson.

 

 

• Abbott Laboratories – Alere

 

Transaction Value: $5.3 billion

Description: Under the terms of the deal, Alere stockholders received $51 per share of common stock in a deal that valued Alere’s equity at $5.3 billion.

 

 

• Danaher – Cepheid

 

Transaction Value: $4 billion

Description: Danaher Corporation disclosed its definitive merger agreement with Cepheid, under which Danaher will purchase all outstanding shares of Cepheid for $53.00 per share in cash, totaling approximately $4 billion in enterprise value, accounting for debt and net of acquired cash.

 

 

• Medtronic – HeartWare International

 

Transaction Value: $1.1 billion

Description: Under the terms of the transaction, each outstanding share of HeartWare common stock has been converted into the right to receive $58.00 in cash, without interest, subject to any required withholding of taxes

 

 

• Stryker – NOVADAQ Technologies

 

Transaction Value: $701 million

Description: Stryker Corporation announced a definitive agreement to acquire NOVADAQ Technologies Inc. for US$11.75 per share, or US$701 million with a net purchase price of US$654 million, reflecting net cash of approximately US$47 million.

 

 

• Baxter International – Claris Injectables

 

Transaction Value: $625 million

Description: The total consideration for the transaction was approximately $625 million. The transaction was financed through a combination of cash on hand and debt.

 

 

• Becton Dickinson (BD) – Caesarea Medical Electronics (CME)

 

Transaction Value: $250 million

Description: Becton Dickinson (BD) purchased the remaining 60% stake in Caesarea Medical Electronics (CME) to gain full ownership of the Israel-based infusion products manufacturer. The deal is valued at approximately $250 million.

 

Top Deals of 2016

 

 

 

• Abbott Laboratories – St. Jude Medical

 

Transaction Value: $25 billion

Description: Abbott agreed to pay $46.75 in cash plus 0.8708 shares of its common stock for each St. Jude Medical share. This deal totals approximately $85 per St. Jude share, representing a 37% premium over closing price of $61.97.

 

 

• Siemens Healthineers – Varian Medical System 

 

Transaction Value: $16.4 billion

Description: Varian announced a definitive agreement to merge with Siemens Healthineers AG in an all-cash deal worth $16.4 billion. Siemens Healthineers will buy all outstanding Varian shares at $177.50 per share, which is a 42% premium over the 30-day average closing price and a 24% premium over the closing price on July 31, 2020.

 

 

• Becton Dickinson (BD) – CareFusion 

 

Transaction Value - $12.2 billion

Description: In 2016, Becton Dickinson (BD) completed its acquisition of CareFusion in a deal valued at $12.2 billion. The transaction aimed to create a leading global medical technology company with a comprehensive portfolio of products and services, enhancing BD's ability to offer innovative solutions across the healthcare continuum. The acquisition was expected to generate significant synergies and strengthen BD's position in the medication management and patient safety sectors.

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• Canon – Toshiba Medical Systems 

 

Transaction Value: $6 billion

Description: In 2016, Canon Inc. acquired Toshiba Medical Systems Corporation in a deal valued at approximately $6 billion. This acquisition aimed to enhance Canon's presence in the medical equipment market and expand its business portfolio beyond imaging and optical products. The deal allowed Canon to leverage Toshiba Medical's advanced medical technologies, strengthening its position in the healthcare sector and driving future growth in this field.

 

 

• J&J – Abbott Medical Optics 

 

Transaction Value: $4.33 billion

Description: Johnson & Johnson today announced a definitive agreement to acquire Abbott Medical Optics (AMO), a wholly-owned subsidiary of Abbott Laboratories, for $4.325 billion in cash. AMO reported sales of $1.1 billion for 2015

 

 

• Thermo Fisher Scientific – FEI Company 

 

Transaction Value: $4.2 billion

Description: Thermo Fisher Scientific Inc., the world leader in serving science, and FEI Company, the leader in high-performance electron microscopy, announced approval of Thermo Fisher’s acquisition of FEI for $107.50 per share in cash. The transaction represents a purchase price of approximately $4.2 billion.

 

 

• Stryker – Sage Products 

 

Transaction Value: $2.775 billion

Description: Stryker Corporation announced a definitive agreement to acquire Sage Products, LLC ("Sage") from Madison Dearborn Partners in an all-cash transaction for $2.775 billion.  The transaction includes an anticipated future tax benefit which is expected to exceed $500 million and to positively impact cash flows over approximately 15 years.

 

 

•  Thermo Fisher Scientific – Affymetrix 

 

Transaction Value: $1.3 billion

Description: Boards of directors have unanimously approved Thermo Fisher’s acquisition of Affymetrix for $14.00 per share in cash. The transaction represents a purchase price of approximately $1.3 billion.

 

 

• Olympus Corporation – Image Stream Medical

 

Transaction Value: $87 million

Description: This acquisition will further enable both companies to improve clinical outcomes, reduce overall costs and enhance quality of life for patients.

 

 

• Siemens Healthineers – NEO New Oncology

 

Transaction Value: $64 million 

Description: NEO New Oncology's proficiency in cancer genomics has been incorporated into Siemens Healthineers' innovation initiatives, bolstering a comprehensive approach to Molecular Diagnostics. This integration aims to deliver substantial value to a wider range of healthcare providers and patients throughout the cancer care journey.

 

 

• Deals from 2010 – 2015

 

 

 

• Medtronic – Covidien (2015)

 

Transaction Value: $42.9 billion

Description: Medtronic, Inc., a prominent player in medical technology, services, and solutions, and Covidien plc, a global provider of healthcare technology and medical supplies, have announced a definitive agreement. Medtronic acquired Covidien in a cash-and-stock deal worth $93.22 per Covidien share, totalling approximately $42.9 billion. This valuation is based on Medtronic's closing stock price of $60.70 per share on June 13, 2014.

 

 

• J&J – Synthes (2012)

 

Transaction Value: $19.7 billion

Description: Johnson & Johnson announced the completion of the acquisition of Synthes, Inc. for a total purchase price of $19.7 billion in cash and stock. Synthes will now be integrated with the DePuy franchise to establish the DePuy Synthes Companies of Johnson & Johnson.

 

 

• Merck KGaA – Sigma – Aldrich (2014)

 

Transaction Value: $17 billion

Description: Merck to acquire Sigma-Aldrich for $140 per share in cash, valuing company at

approx. $17 billion (€13.1 billion). The transaction is expected to be immediately accretive to Merck’s EPS pre and EBITDA margin. Merck expects to achieve annual synergies of approximately €260 million (approximately $340 million)

 

 

• Danaher – Pall Corporation (2015)

 

Transaction Value: $13.8 billion

Description: Under this agreement, Danaher purchased all outstanding shares of Pall for $127.20 per share in cash, amounting to a total enterprise value of roughly $13.8 billion. This valuation accounts for assumed debt and net acquired cash.

 

 

• Thermo Fisher Scientific – Life Technologies (2014)

 

Transaction Value: $13.6 billion

Description: Thermo Fisher Scientific, the world leader in serving science, today announced that it has completed its acquisition of Life Technologies Corporation $76.13 ($76.1311786) in cash per fully diluted common share, or approximately $13.6 billion, plus the assumption of $1.5 billion in net debt

 

 

• Zimmer – Biomet (2015)

 

Transaction Value: $13.35 billion

Description: Zimmer acquired Biomet in a cash and stock transaction valued at approximately $13.35 billion, including the assumption of net debt.

 

 

• Valeant Pharmaceuticals – Bausch & Lomb (2013)

 

Transaction Value: $8.7 billion

Description: Valeant will pay aggregate consideration of $8.7 billion in cash, of which approximately $4.5 billion will go to an investor group led by Warburg Pincus and approximately $4.2 billion will be used to repay Bausch + Lomb's outstanding debt.  Valeant expects to achieve at least $800 million in annual cost savings by end of 2014. Bausch + Lomb expects to have revenues of approximately $3.3 billion and adjusted EBITDA in 2013 of approximately $720 million.

 

 

• Roche – InterMune (2014)

 

Transaction Value: $8.3 billion

Description: Roche and InterMune, Inc. announced their definitive merger agreement, with Roche set to acquire InterMune fully at a price of $74.00 per share in an all-cash deal. This corresponds to a total transaction value of $8.3 billion on a fully diluted basis. The offer presents a 38% premium over InterMune’s closing price on August 22, 2014, and a 63% premium over InterMune’s unaffected closing price on August 12, 2014.

 

 

• Siemens – Dade Behring (2014)

 

Transaction Value: $7 billion

Description: Siemens intends to acquire all outstanding shares of Dade Behring by submitting a cash offer to the Dade Behring shareholders of US$77 per common share. The planned acquisition has a total transaction volume of approximately US$7 billion (roughly €5 billion).

 

 

• Dentsply International – Sirona Dental System (2015)

 

Transaction Value: $5.56 billion 

Description: Dentsply announced its acquisition of Sirona Dental Systems for $5.5 billion, describing the deal as a merger of equals. This union will create a dental health giant with a combined market value of approximately $13.3 billion. Collectively, the companies generate around $3.8 billion in sales and $900 million in adjusted earnings before interest, taxes, depreciation, and amortization.

 

 

• Grifols – Talecris Biotherapeutics

 

Transaction Value: $3.4 billion

Description: Grifols acquired Talecris through a combination of cash and newly-issued Grifols non-voting shares, with a total current value of approximately $3.4 billion (€2.8 billion). This acquisition established a global leader in life-saving and life-enhancing plasma protein therapeutics.

 

 

• Novartis – Alcon (2010)

 

Transaction Value: $51.6 billion

Description: Novartis owned an approximate 77% interest in Alcon. On December 14, 2010, Novartis entered into a definitive agreement to merge Alcon into Novartis in consideration for Novartis shares and a contingent value amount.

 

 

• Sanofi – Genzyme (2011)

 

Transaction Value: $20.1 billion

Description: Sanofi-aventis and Genzyme Corporation announced that they have signed a definitive agreement for sanofi-aventis to acquire Genzyme for $74.00 per share in cash, totalling approximately $20.1 billion. Additionally, each Genzyme shareholder will receive one Contingent Value Right (CVR) per share, entitling them to additional cash payments if specific milestones related to Lemtrada (alemtuzumab MS) or 2011 production volumes for Cerezyme and Fabrazyme are met.

 

 

• Abbott Laboratories – Solvay Pharmaceuticals (2011)

 

Transaction Value: $6.2 billion

Description: Abbott acquired Solvay's pharmaceuticals business (Solvay Pharmaceuticals) for approximately $6.1 billion, in cash, plus additional payments of up to EUR 100 million per year if certain sales milestones are met in 2011, 2012 and 2013. Contingent consideration of approximately $290 million was recorded

 

 

• Covidien – ev3 Inc (2011) 

 

Transaction Value: $2.6 billion

Description: According to the agreement, Covidien will pay $22.50 in cash per ev3 share, amounting to a total of approximately $2.6 billion, net of acquired cash. The merger with ev3 will offer Covidien an additional growth platform and is anticipated to enhance both revenue and earnings growth rates. The transaction will involve an all-cash tender offer by a wholly-owned Covidien subsidiary, followed by a second-step merger, and is subject to customary closing conditions.

 

 

• Agilent Technologies – Varian (2010) 

 

Transaction Value: $1.5 billion

Description: Agilent paid approximately $1.5 billion in cash for Varian in a deal that brings together two Silicon Valley pioneers.

 

 

• Deals from 2005 – 2009

 

 

 

• Philips Healthcare – Respironics (2008)

 

Transaction Value: $5.1 billion

Description:  Royal Philips Electronics ("Philips") announced the completion of the tender offer by its wholly owned subsidiary, Moonlight Merger Sub, Inc., to acquire all outstanding shares of common stock of Respironics, Inc. ("Respironics") for $66.00 per share, without interest and subject to applicable tax withholding. By the end of the subsequent offering period. Philips Merger Sub had received over 70 million Respironics shares tendered, representing more than 94% of the outstanding shares.

 

 

• Daiichi Sankyo – Ranbaxy Laboratories (2008)

 

Transaction Value: $4.6 billion

Description: Daiichi Sankyo Company Limited ("Daiichi Sankyo") and Ranbaxy Laboratories Limited ("Ranbaxy") announced today the successful completion of their transformational deal with the final transfer of the Singh family's remaining equity shares in Ranbaxy which is approximately 268,711,323 shares. 

 

 

• Medtronic – Kyphon (2008)

 

Transaction Value: $3.9 billion

Description: Medtronic, Inc. and Kyphon announced that they have signed a definitive merger agreement where Medtronic will acquire all outstanding shares of Kyphon for $71 per share in cash. The boards of directors of both companies have unanimously approved the transaction, which is valued at approximately $3.9 billion, excluding $320 million in payments related to the St. Francis Medical Technologies, Inc. and Disc-O-Tech Medical Technologies, Ltd. transactions. The acquisition price represents a 32% premium over Kyphon’s closing stock price of $53.68 on July 26, 2007, and a 35% premium over Kyphon’s 30-day average trading price of $52.76 per share.

 

 

• Abbott Laboratories – Advanced Medical Optics (2009)

 

Transaction Value: $2.8 billion

Description: Abbott and Advanced Medical Optics (AMO) announced a definitive agreement for Abbott to acquire AMO for $22 per share in cash, for a total transaction value of approximately $2.8 billion, inclusive of estimated net debt at the time of closing.

 

 

• Stryker – Ascent Healthcare Solutions (2008) 

 

Transaction Value: $525 million

Description: Under the terms of the agreement, Stryker will acquire Ascent Healthcare Solutions for $525 million in an all-cash transaction.

 

 

• Boston Scientific – Guidant (2006)

 

Transaction Value: $27.2 billion

Description: Guidant's Board of Directors has unanimously approved and accepted the merger agreement presented by Boston Scientific on January 17, 2006. According to the agreement, Boston Scientific will acquire all outstanding shares of Guidant for $80 per share, comprising a combination of cash and stock, totalling approximately $27 billion overall.

 

 

• Hologic – Cytyc Corporation (2007)

 

Transaction Value: $6.2 billion

Description: Under the terms of the Agreement and Plan of Merger entered into on May 20, 2007, Cytyc stockholders received 0.52 of a share of Hologic common stock and $16.50 in cash for each share of Cytyc common stock they own for a total consideration of approximately $6.2 billion.

 

 

• Roche – Ventana Medical Systems (2008)

 

Transaction Value: $3.4 billion

Description: Under the terms of the agreement, Roche will increase the tender offer price for Ventana common shares to $89.50 per share in cash (totalling approximately $3.4 billion on a fully diluted basis), and Ventana’s Board of Directors will recommend that shareholders tender their shares to Roche. Both Ventana's and Roche's boards have approved the merger agreement. This offer represents a premium of 4.9% over Ventana’s closing price on January 18, 2008, a 19.3% premium over Roche’s initial offer on June 27, 2007, and a 72.3% premium over Ventana’s closing price on June 22, 2007 (the day before Roche's initial offer was announced).

 

 

• GE Healthcare – Instrumentarium Corporation (2005)

 

Transaction Value: $2.3 billion

Description: General Electric Company, through its GE Medical Systems division, and Instrumentarium Corporation announced that the companies have entered into a definitive combination agreement for GE to acquire Instrumentarium. Pursuant to this agreement, GE initiated a tender offer to acquire all of the outstanding Instrumentarium shares for EUR 40 per share payable in cash.

 

Deals from 2000 – 2004

 

 

 

• J&J – Guidant Corporation (2004)

 

Transaction Value: $25.4 billion

Description: Johnson & Johnson will pay $40.52 in cash and .493 shares of Johnson & Johnson common stock for each outstanding share of Guidant common stock. Valued as of the market close on January 13, the transaction has a per share value of $71.00 to Guidant shareholders.

 

 

• Abbott Laboratories – Therasense (2004) 

 

Transaction Value: $1.2 billion

Description: Abbott acquired all of the capital stock of TheraSense for $27 per share in cash

The MedTech industry stands at the forefront of healthcare innovation, driven by a steadfast commitment to improving patient outcomes and quality of life worldwide. With substantial investments in research and development and strategic M&A initiatives, companies have not only responded to evolving healthcare needs accelerated by the pandemic but also positioned themselves for continued growth and leadership. Understanding the strategic importance and impact of these deals will be crucial for stakeholders aiming to navigate the future landscape of the MedTech industry effectively.

 

( sakshi.kamble@biospectrumasia.com )