2018 was a great year for MedTech M&A. We have gathered information from a number of sources to give the following report. Click on this link to access the list of 2018 MedTech Deals.
Medical Technology (MedTech) entails all technology and technological devices used for treating medical conditions and illnesses. The sector encompasses a vast range of healthcare products that are used to treat and improve the quality of life.
The sector provides products that are electronically driven, used for treating medical conditions, and require users to possess technological knowledge. The products include medical devices, diagnostic and imaging equipment, and implantable instruments.
Technological advancements majorly drive the sector. An increase in the occurrence of medical conditions and diseases, rising healthcare expenditure for less invasive treatments, and awareness about the technology/product also contribute to that effect.
Most of the fund flows within the MedTech sector arose mainly from high-value deals of 2018. The top 5 high-valued deals amounted to $12.4 billion.
The most acquisitive company in the sector was Boston Scientific Corpwhich completed eightdeals in total in 2018.
The median EV/EBITDA and EV/Revenue multiple for deals in the MedTech sector in 2018 was16.5x and 3.60x, respectively.
Strategic buyers (177 deals) accounted for the lion’s share of the volume of deals in the sector, accounting for almost 90% of all deals done while financial buyers (23 deals) accounted for just above 10% of all deals.
Boston Scientific Corp Press Release
Roche News Release
Platinum Equity Press Release
Danaher Press Release
Roche News Release
The highest number of deals processedwere in the North Americanregion, specifically in UnitedStates. A large portion of deals were also executedin the Asia-Pacific region.
Deals by Month
Deals by Quarter
There does not seem to be any seasonality in the transactions in the MedTech space. Comparing monthly data, March and June have experienced the highest number of M&A activity, and February and November have experienced the least.
Healthcare is a sector experiencing a high number of mergers and acquisitions, every year. To determine the trend of M&A in the MedTech sub-sector, the following methodology was adopted –
Source – FactSet
Deal completion date – 2018
Area considered – Worldwide
Target companies – Produce products driven by technology, specifically catering to
treat medical conditions
Few relevant transactions were also obtained from publicly available healthcare M&A