Fitch: 5 trends to watch in device company M&A

Written by Laura Dyrda | April 25, 2019 | Print  |

Fitch Solutions released a a report titled "Small-Scale Bolt-On Deals To Be Core Focus of Medical Device 2019 M&A," detailing medical device mergers and acquisitions, examining the key trends in the field and what to expect in the future.

Five trends to know:

1. Private equity firms and investors have become more interested in the medical device space, which will influence future M&A. Globally, the expanding life span of the aging population and growing middle class in developing countries is attractive to investors.

2. Companies will likely continue expanding through M&A and diversify their product portfolios.

3. Fitch sees small tuck-in deals becoming more common as companies search for inorganic growth opportunities. Smaller tuck-ins can also supplement a company's research and development capabilities, with companies like Medtronic, Smith & Nephew and Stryker already making these deals in 2019.

4. Small tuck-in deals, which Fitch analysts think will become more prevalent in the second quarter, are attractive because they are typically low-value acquisitions allowing companies to cement their position within a market.

5. Large device companies including Johnson & Johnson and Smith & Nephew are acquiring surgical robots as a growth area in the future.

More articles on devices:
6 orthopedic and spine device company key notes
Nexxt Spine installs 5th additive manufacturing machine: 5 things to know
Camber Spine moves 27K-square-foot space ahead of product launches

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