Medtech Could Be Bracing Itself for Another Huge Acquisition
Temasek Holdings could be looking to sell its Advanced MedTech unit, according to a report from Reuters.
Singapore-based Advanced MedTech was spun out of Accuron Technologies and is focused on urology.
Sources have said that two investment banks have been tapped to launch the sale process for the company, which is valued at roughly $1 billion, according to Reuters.
Private equity firms, healthcare-focused funds, and strategic investors are expected to put in bids for Advanaced Medtech, according to the report from Reuters.
Deal activity has been sporadic for the medtech industry in 2022. Finding from EY’s Pulse of the Industry Medical Technology Report 2022 shows that there has been a 13% drop in the 12-months ending June 30, 2022 – despite M&A spending being up 24%.
“The first half of July to December of 2021 was a pretty active M&A sector, but really over the last six months the M&A space has really paused for lack of a better word,” John Babbit, a Life Science Partner at EY, said during a call with the media last month. “We’ve seen a lot of those private companies defer sale processes, raise additional venture capital and really pin their sights on 2023.”
However, there have been some strong deals announced. Earlier this month, Johnson & Johnson announced it would acquire Abiomed in a deal valued at $16.6 billion.
In September, Advanced Medtech said it would be acquiring the majority interest in Wikkon, a specialist in urology and shockwave therapy devices. The Shenzhen, China-based company, which was established in 1996, specifically develops devices to treat urological, and orthopedic conditions such as kidney stones, erectile dysfunction and joint, muscle or tissue pain.
Article source: MDDI