Glossary Term
Mergers & Acquisitions
Definition
Mergers and Acquisitions (M&A) involve the consolidation of companies or assets through various financial transactions. A merger refers to the unification of two companies into a single entity, while an acquisition involves one company purchasing another. In the MedTech industry, M&A transactions are often driven by the need to expand product portfolios, gain market share, access new technologies, or achieve operational efficiencies.
Relevance to the MedTech Industry
M&A activities are critical for fostering innovation, enabling companies to scale operations, and accelerating the introduction of new medical devices. These transactions also allow companies to address market demands more effectively by leveraging combined expertise, resources, and distribution networks.
Additional Information & Related Terms
Examples of M&A in MedTech
Johnson & Johnson Acquiring Auris Health (2019):
Expanded J&J’s portfolio with robotic surgery systems, enhancing capabilities in minimally invasive procedures.
Medtronic Acquiring Mazor Robotics (2018):
Strengthened Medtronic’s spine surgery offerings with Mazor’s robotic-assisted surgical systems.
Boston Scientific Acquiring BTG (2019):
Broadened Boston Scientific’s interventional oncology and vascular disease solutions.
Stryker Acquiring Wright Medical (2020):
Added Wright’s extremities and biologics portfolio to Stryker’s orthopedic offerings.
Abbott Acquiring St. Jude Medical (2017):
Enhanced Abbott’s cardiac and neuromodulation device portfolio.
Related Terms
Due Diligence: The process of thoroughly evaluating the financial, legal, and operational aspects of a company before an M&A transaction.
Antitrust Regulations: Laws designed to prevent monopolistic practices and maintain market competition during M&A.
Integration: The process of combining the operations, cultures, and systems of merging or acquired companies.
Spin-Off: Divesting a portion of a company’s assets or business units to focus on core operations.