One of the biggest healthcare companies in the world, Medtronic plc, has agreed to acquire Medicrea®, a France-based spinal surgery company focused on artificial intelligence, predictive modeling, and patient specific implants.
Acquisition Details
The transaction was approved unanimously by members of both companies’ boards of directors. The agreement was an all-cash tender offer for all outstanding shares of Medicrea priced at €7.00 per Medicrea share.
According to the press release, the price of €7.00 per share represents a premium of:
- 22% over the closing price of Medicrea shares on July 14, 2020
- 33% over the 1-month volume weighted average price of Medicrea shares as of July 14, 2020
- 56% over the 3-month volume weighted average price of Medicrea shares as of July 14, 2020
The transaction is subject to customary closing conditions. This includes relevant United States merger control clearance, regulatory clearance from the French Markets Authority, and applicable foreign investment clearance in France. The parties anticipate filing the transaction with the French Markets Authority in September 2020. They expect the acquisition to close by the end of calendar year 2020.
Medtronic’s Innovative Spine Portfolio
Medtronic is the largest supplier of spinal implants, instruments, robotic assist devices, imaging systems, and related biologics. Its spine business is part of Medtronic’s Restorative Therapies Group, along with Brain Therapies, Pain Therapies, and Specialty Therapies.
Jacob Paul is senior vice president and president of the Cranial and Spinal Technologies division at Medtronic. The Cranial and Spinal Technologies division is part of the Restorative Therapies Group.
Paul discussed the acquisition and its impact on Medtronic’s spine portfolio. Paul said, “Combining Medtronic’s innovative portfolio of spine implants, robotics, navigation, and 3D imaging technology with Medicrea’s capabilities and solutions in data analytics, artificial intelligence and personalized implants, would enhance Medtronic’s fully-integrated procedural solution for surgical planning and delivery.”
Paul continued, “This marks another important step in furthering our commitment to improving outcomes in spine care. Medtronic will become the first company to be able to offer an integrated solution including artificial intelligence driven surgical planning, personalized spinal implants and robotic assisted surgical delivery, which will significantly benefit our customers and their patients.”
This year, Medtronic ranked number one in the Forbes healthcare category and number 129 on the Forbes Global 2000 list. The 2020 Forbes Global 2000 list analyzed financial results for the 12-month period ending on April 30, 2020. During that time period, Medtronic recorded $31.1 billion in sales, $5.3 billion in profit, and $131 billion in market value.
COVID-19 has had a dramatic impact on all industries. Geoff Martha, Medtronic chief executive officer, told Forbes, “Importantly, we are starting to enter the early stages of a global recovery. As hospitals begin to resume broader treatment of non-COVID-19 patients around the world, we expect our business to begin to recover as well.”
