Medtech M&A explodes in 2014

Merger & acquisition volume in the medical device space jumped nearly 40% this year, but the real news is a surge in valuations, which soared some 504% compared with 2013.

Merger & acquisition activity surged this year in the medical device industry, with both the number and value of deals climbing to new heights after years of decline, according to a MassDevice.com analysis.

The number of deals during 2014 rose 39.0% to 57, from 41 in 2013, according to our look at transactions with announced values. But the real news is the surge in valuations: The total value of those 57 deals soared 504.1% to $86.39 billion, compared with just $14.3 billion last year.*

Nearly half of that value represents the blockbuster, $43 billion union of Medtronic (NYSE:MDT) and Covidien (NYSE:COV). Excluding that deal, the other 56 were collectively worth $43.4 billion – incredibly, still a whopping 203.4% over 2013.

The 10 biggest deals were worth a collective $79.6 billion ($36.6 billion absent Medtronic/Covidien):

  1. Medtronic: $43 billion for Covidien
  2. Zimmer: $13.45 billion for Biomet
  3. Becton Dickinson: $12.2 billion for CareFusion
  4. Wright Medical: $3.3 billion for Tornier
  5. Danaher: $2.14 billion for Nobel Biocare
  6. Steris: $1.9 billion for Synergy Health
  7. Smith & Nephew: $1.7 billion for ArthroCare
  8. Sterigenics: $826 million for Nordion
  9. Merz: $600 million for Ulthera
  10. CareFusion: $500 million for GE Healthcare’s Vital Signs

Several companies were particularly acquisitive this year, making multiple buyouts across the space:

Other notable multiple acquirers include:

 Figures include transactions announced or concluded as of Dec. 12, 2104; deal values include value of any announced milestones.