Wednesday 6 March 2013, Amsterdam
The “Medical Equipment Quarterly Deals Analysis: M&A and Investment Trends – Q4 2012” report is an essential source of data and trend analysis on the mergers and acquisitions (M&As) and financing in the medical equipment market. The report provides detailed information on M&As, equity/debt offerings, private equity, venture financing and partnership transactions registered in the medical equipment industry in Q4 2012. The report discloses detailed comparative data on the number of deals and their value in the past five quarters, categorized into deal types, segments, and geographies. The report provides information on the top private equity, venture capital and advisory firms in the medical equipment industry.
We derived the data presented in this report from proprietary in-house deals database and primary and secondary research.
Number Of M&A Deals Increased 18% In Q4 2012
M&As and asset transactions, which include change in ownership and control of companies or assets (We doe not consider this value as a new investment in the market), reported an increase in the number of deals in the medical equipment industry in Q4 2012 with 157 deals, as compared to 132 deals in Q3 2012. However, the values of M&A deals decreased with investors refraining from entering into high-value transactions. The industry reported $12.8 billion deal value in Q4 2012, as compared to $13 billion in Q3 2012. On a year-on-year basis, the number of deals and deal values were higher in Q4 2012, when compared to 154 deals worth of $6.9 billion in Q4 2011. HealthCare IT market reported an increase in deal activity with 35 deals worth $497.6m in Q4 2012.
Baxter International announcing the acquisition of Gambro AB, a medical technology company, from EQT Partners AB, a private equity firm and Investor AB, an investment company, for a total purchase consideration of SEK26.5 billion and McKesson Corporation, a healthcare services and information technology company, receiving Hart-Scott-Rodino Antitrust approval to acquire PSS World Medical, Inc., a distributor of medical products to physicians and elder care providers, for a purchase consideration of $29 per share or $2,100m in cash were two of the high-value deals reported in Q4 2012.
According to Bhaskar Vittal, Analyst at GlobalData, “Number of M&A deals is expected to witness an uptick in the coming months due to improved economic conditions especially in the US. Also with improved business confidence, the companies who are at the selling end might be more receptive to deals due to improving valuations of the companies.”
Value Of Equity Offerings Declined In Q4 2012
Global equity offerings, including initial public offerings (IPO), secondary offerings, and private investment in public equities (PIPEs), reported a marginal increase in the number of deals and a decline in deal values in Q4 2012. The segment reported 71 deals worth $1.3 billion in Q4 2012, as compared to 70 deals worth $3.2 billion in Q3 2012. On a year-on-year basis, the number of equity offerings and their values increased in Q4 2012, when compared with 65 deals worth $1.1 billion in Q4 2011.
The IPO market recorded no change in the number of deals and an increase in deal value in Q4 2012. The market recorded three deals worth $147m in Q4 2012, as compared to three deals worth $94m in Q3 2012. Besides, 27 secondary/ follow-on offerings worth $996.2m were reported in Q4 2012, as compared to 26 deals worth $1.2 billion in Q3 2012. The medical equipment industry reported 41 PIPE transactions worth $187.1m in Q4 2012.
Debt offerings, including secondary offerings and private debt placements, recorded a decrease in number and an increase in deal values in Q4 2012 with 24 deals worth $18.7 billion, as compared to 31 deals worth $15.3 billion in Q3 2012.
Debt offerings, including secondary offerings and private debt placements, recorded an increase in the number of deals and deal values in Q3 2012 with 32 deals worth $18.3 billion, as compared to 18 deals worth $3.2 billion in Q2 2012.
Growth/Expansion Stage Companies Attract Much Of VC Investments In Q4 2012
The venture capital (VC) market reported an increase in the number of deals and a decline in deal values in Q4 2012 with 253 deals worth $1.4 billion, as compared to 230 deals worth $1.5 billion in Q3 2012. The investments fell with investors exercising caution due to the volatile market conditions. On a year-on-year basis, the number of deals and deal values decreased in Q4 2012, when compared to 255 deals worth $1.5 billion in Q4 2011.
In Q4 2012, venture capitalists focused on investing in growth/expansion stage companies. Of the 253 deals reported in Q4 2012, 124 were start-up stage financing deals worth $463.2m, 86 were growth stage financing deals worth $638m, 31 were later stage financing deals worth $252.2m and 12 were seed stage financing deals worth $9.7m. Intarcia Therapeutics, Inc., Endosense SA, Angel Medical Systems, Inc. and InSightec Ltd. were some of the companies succeeded in securing growth financing from venture capital firms in Q4 2012.
Domain Associates topped the list of venture financing firms by participating in 14 deals worth $345.8m in the last four quarters (Q1 2012 to Q4 2012), followed by New Enterprise Associates with 11 deals worth $444.5m.
The private equity (PE) market recorded a decrease in the number of deals and deal values in Q4 2012 with 22 deals worth $905.9m in Q4 2012, as compared to 29 deals worth $3.3 billion in Q3 2012.
According to Bhaskar Vittal, “Organic growth becoming a challenge due to declining reimbursement and budgetary cuts in most of the developed economies, growth and expansion stage companies with innovative products catering to unmet need will continue to attract VC investments.’’
Deal Activity In North America Increased In Q4 2012
North America reported an increase in the number of deals and deal values in Q4 2012. The region recorded 563 deals worth $27.1 billion in Q4 2012, as compared to 545 deals worth $25.6 billion in Q3 2012, reflecting an increase of 3% and 6%, respectively. On a year-on-year basis, the number of deals and deal values increased in Q4 2012, when compared to 527 deals worth $14.9 billion in Q4 2011.
Europe reported an increase in the number of deals and deal values with 141 deals worth $6.9 billion in Q4 2012, as compared to 107 deals worth $5.5 billion in Q3 2012.
Asia Pacific registered a decrease in the number of deals with 79 in Q4 2012, as compared to 87 in Q3 2012. The deal values reported a decrease in Q4 2012 with $701.8m, as compared to $5.1 billion in Q3 2012.
