Friday 3 May 2013, Amsterdam
“Medical Equipment Quarterly Deals Analysis: M&A and Investment Trends – Q1 2013” 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 Q1 2013. 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.
Number of M&As Declines 14% in Q1 2013
M&As and asset transactions, which include change in ownership and control of companies or assets (We do not consider this value as a new investment in the market), reported a decline in the number of deals in Q1 2013 with 139 deals, compared to 162 deals in Q1 2012, reflecting a decrease of 14%. On a quarter-on-quarter basis, the number of deals decreased in Q1 2013, compared to 164 deals in Q4 2012. Deal activity slowed as companies have been apprehensive about their investments owing to macroeconomic and geopolitical concerns.
Deal values of M&As reported an increase with $7.5 billion in Q1 2013, compared to $7.2 billion in Q1 2012. However, on a quarter-on-quarter basis, deal values decreased 40% in Q1 2013, compared to $12.6 billion in Q4 2012. Healthcare IT and in-vitro diagnostic markets recorded the highest number of deals in Q1 2013 with 31 deals and 25 deals, respectively.
Cardinal Health, Inc., a provider of health care services, completing the acquisition of AssuraMed, Inc., a provider of disposable medical products to patients suffering from chronic diseases, from Clayton, Dubilier & Rice, Inc. and GS Capital Partners L.P, private equity firms, for a purchase consideration of $2,070m, is the only deal that exceeded $1 billion mark in Q1 2013. This acquisition is expected to enable Cardinal Health to broaden its reach, and serve patients with chronic diseases or those under post-acute care; extend its core capabilities to the home care segment with a specialized and scalable platform; improve its ability to service customers across the ambulatory care channel, including care sites such as physician offices and in support of home health agencies; improve its payor relationships and expertise; deliver branded medical products directly to patients, consumers and local home medical equipment providers; extend its offerings to retail pharmacy and health system customers; supply to home health care channel product lines including ostomy, diabetes, insulin therapy, urological, wound care and incontinence.
According to Bhaskar Vittal, Analyst, “The M&A activity is expected to be on the lower side in coming quarters due to the prevailing economic conditions in Europe. Uncertainties in some European countries may lead to companies rethinking on their inorganic growth strategy especially when it comes to deals involving companies that derive significant portion of their revenues from Europe. ”
Deal Values Of IPOs Increase In Q1 2013
Global equity offerings, including initial public offerings (IPO), secondary offerings, and private investment in public equities (PIPEs), reported an increase in the number of deals and deal values in Q1 2013. The equity offerings segment reported 97 deals worth $2.9 billion in Q1 2013, compared to 66 deals worth $1.6 billion in Q1 2012. On a quarter-on-quarter basis, the number of equity offerings and their values increased in Q1 2013, compared with 72 deals worth $1.1 billion in Q4 2012.
The IPO market reported an increase in deal values with $835.7m in Q1 2013, compared to $328.4 in Q1 2012. However, the number of deals remained the same with seven deals each in Q1 2013 and Q1 2012.
On a quarter-on-quarter basis, the number of IPOs and their values increased in Q1 2013, compared to two deals worth $147m in Q4 2012. Besides, 37 secondary/ follow-on offerings worth $1.9 billion and 53 PIPE transactions worth $183m were reported in Q1 2013.
Debt offerings, including secondary offerings and private debt placements, recorded a decrease in the number of deals and deal values in Q1 2013 with 30 deals worth $9.5 billion, compared to 35 deals worth $9.6 billion in Q1 2012. On a quarter-on-quarter basis, the number of deals increased and deal values decreased in Q1 2013, compared to 24 deals worth $18.7 billion in Q4 2012.
Venture Capital Deals And Their Values Decrease In Q1 2013
The venture capital (VC) market reported a decline in the number of deals and deal values in Q1 2013 with 217 deals worth $1.4 billion, compared to 241 deals worth $1.5 billion in Q1 2012. On a quarter-onquarter basis, the number of deals declined and deal values remained the same in Q1 2013, compared to 267 deals worth $1.4 billion in Q4 2012. Later stage companies raised a total of $474.7m and were at the top in securing finance in Q1 2013. Avedro, Inc., T2 Biosystems, Inc., Optiscan Biomedical Corporation, One Medical Group, Inc., and Intersect ENT Inc., were some of the companies which were successful in securing later stage financing in Q1 2013.
Versant Venture Management LLC topped the list of venture financing firms by participating in 13 deals worth $221.7m in the last one year. CardiAQ Valve Technologies, Inc., Vital Therapies, Inc., Glaukos Corporation, Zyga Technology, Inc. and Benvenue Medical, Inc., were some of the companies that were successful in raising finance from Versant Venture Management in the last one year.
The private equity (PE) market recorded an increase in the number of deals and deal values with 31 deals worth $4.3 billion in Q1 2013, compared to 16 deals worth $650m in Q1 2012. On a quarter-on-quarter basis, the number of deals and deal values increased in Q1 2013, when compared with 22 deals worth $905.9m in Q4 2012.
Deal Activity In North America Increases In Q1 2013
North America showed signs of improvement in deal activity, despite clouded economic conditions in Q1 2013. The region reported an increase in the number of deals and deal values with 548 deals worth $20 billion in Q1 2013, compared to 542 deals worth $12.5 billion in Q1 2012. On a quarter-on-quarter basis, the number of deals and deal values decreased in Q1 2013, compared to 586 deals worth $26.8 billion in Q4 2012.
Europe reported a decrease in the number of deals and deal values with 154 deals worth $3.3 billion in Q1 2013, compared to 180 deals worth $4.6 billion in Q1 2012. On a quarter-on-quarter basis, the number of deals increased and deal values decreased in Q1 2013, compared to 145 deals worth $6.9 billion in Q4 2012.
Asia Pacific registered a marginal increase in the number of deals with 96 in Q1 2013, compared to 95 in Q1 2012. The deal values reported a decrease in Q1 2013 with $1.7 billion, compared to $4.4 billion in Q1 2012. On a quarter-on-quarter basis, the number of deals and deal values increased in Q1 2013, compared to 80 deals worth $563.4m in Q4 2012.
