Medical Equipment Industry Reported An Increase In Deal Values In Q2 2013

Wednesday 11 September 2013, Amsterdam

“Medical Equipment Quarterly Deals Analysis: M&A and Investment Trends - Q2 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 Q2 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.

GlobalData derived the data presented in this report from proprietary in-house Medical eTrack deals database and primary and secondary research.

Value Of M&As Increased In Q2 2013

M&As and asset transactions, which include change in ownership and control of companies or assets (GlobalData does not consider this value as a new investment in the market), reported an increase in deal values with $31.6 billion in Q2 2013, as compared to $7.5 billion in Q1 2013. The number of deals decreased to 141 in Q2 2013 from 156 in Q1 2013. On a year-on-year basis, the number of deals decreased and deal values increased in Q2 2013, when compared to 165 deals worth $17.1 billion in Q2 2012. Healthcare IT market recorded the maximum number of M&As in Q2 2013 with 32 deals, followed by in vitro diagnostics market with 23 deals.

Life Technologies Corporation receiving approval of its shareholders for its acquisition by Thermo Fisher Scientific, Inc., for a consideration of US$76 in cash per fully diluted common share or approximately US$13.6 billion is one of the high value transaction reported in Q2 2013. The acquisition will enable Thermo Fisher to combine its offerings in analytical technologies and specialty diagnostics with Life’s technologies for bioproduction and forensics applications, which could result in symbiotic opportunities.

Deal Values Of IPOs Increase In Q2 2013

Global equity offerings, including initial public offerings (IPO), secondary offerings, and private investment in public equities (PIPEs), reported a decrease in the number of deals and an increase in deal values in Q2 2013. The segment recorded 93 deals worth $5.6 billion in Q2 2013, as compared 98 deals worth $1.6 billion in Q1 2013. On a year-on-year basis, the number of deals and deal values increased in Q2 2013, when compared with 81 deals worth $1.5 billion in Q2 2012.

Seven IPOs worth $729.4m were reported in Q2 2013, as compared to six IPOs worth $135m in Q1 2013. Secondary/ follow-on offerings recorded an increase in the number of deals and deal values in Q2 2013 with 36 deals worth $4.3 billion, as compared to 35 deals worth $1.2 billion in Q1 2013. PIPEs reported a decrease in the number of deals and an increase in deal values with 50 deals worth $563.1m in Q2 2013, as compared to 57 deals worth $190m in Q1 2013.

Debt offerings, including secondary offerings and private debt placements, recorded a decrease in the number of deals and deal values in Q2 2013 with 21 deals worth $9.4 billion, compared to 30 deals worth $9.5 billion in Q1 2013.

Venture Capital Deals Decline In Q2 2013

The VC market reported 182 deals worth $1.3 billion in Q2 2013, as compared to 260 deals worth $1.6 billion in Q1 2013. On a year-on-year basis, the number of deals and deal values decreased in Q2 2013,hen compared to 255 deals worth $1.8 billion in Q2 2012. Start-up stage companies accounted for the highest number with 50% of the total VC deals in Q2 2013. Growth capital/expansion stage companies followed in second place with 32% of the deals.

Versant Venture Management LLC and High-Tech Grunderfonds Management GmbH topped the list of venture financing firms by each participating in 12 deals worth $192.5m and $20.5m, respectively, in the last four quarters (Q3 2012 to Q2 2013).

The private equity (PE) market recorded a decrease in the number of deals and deal values in Q2 2013 with 14 deals worth $2.4 billion in Q2 2013, as compared to 31 deals worth $4.3 billion in Q1 2013.

North America Recorded An Increase In Deal Values In Q2 2013

North America reported a decrease in the number of deals with 508 deals in Q2 2013, as compared to 600 deals in Q1 2013. However, deal values increased to $41.3 billion in Q2 2013 from $18.9 billion in Q1 2013. On a year-on-year basis, the number of deals decreased and deal values increased in Q2 2013, when compared to 568 deals worth $17.6 billion in Q2 2012.

Europe reported an increase in the number of deals and deal values in Q2 2013. The region recorded 180 deals worth $8.3 billion in Q2 2013, as compared to 167 deals worth $3.3 billion in Q1 2013. On a yearon- year basis, the number of deals increased and deal values remained same in Q2 2013, when compared to 178 deals worth $8.3 billion in Q2 2012.

Asia Pacific registered an increase in the number of deals with 102 in Q2 2013, as compared to 98 in Q1 2013. The deal values reported a decrease in Q2 2013 with deals worth $622.1m, as compared to $1.6 billion in Q1 2013.