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Global medical equipment mergers market: $12.8 billion deal value in Q4 2012

Press Release   •   Feb 22, 2013 14:22 GMT

The global medical equipment mergers market deals grew between Q3 2012 and Q4 2012, from 132 deals to 157 deals. Despite this increase in the number of deals, the actual value of those deals decreased between quarters. The global medical equipment mergers market reported that the value of deals in Q3 2012 reached 13 billion, while Q4 2012 deal value reached $12.8 billion. On a year-by-year basis, the market is increasing, with number of deals and deal value stronger in Q4 2012 than in Q4 2011. Q4 2011 saw the number of deals reach 154, while value of those deals was only $6.9 billion. The healthcare IT market reported an increase in deal activity with 35 deals worth $497.6m in Q4 2012.

Baxter International announcing the acquisition of Gambro AB, a medical technology company, from EQT Partners AB, a private equity firm and Investor AB, an investment company, for a total purchase consideration of SEK26.5 billion and McKesson Corporation, a healthcare services and information technology company, receiving Hart-Scott-Rodino Antitrust approval to acquire PSS World Medical, Inc., a distributor of medical products to physicians and elder care providers, for a purchase consideration of $29 per share or $2,100m in cash were two of the high-value deals reported in Q4 2012.

Number of M&A deals is expected to witness an uptick in the coming months due to improved economic conditions especially in the US. Also with improved business confidence, the companies who are at the selling end might be more receptive to deals due to improving valuations of the companies.

Global equity offerings, including initial public offerings (IPO), secondary offerings, and private investment in public equities (PIPEs), reported a marginal increase in the number of deals and a decline in deal values in Q4 2012. The segment reported 71 deals worth $1.3 billion in Q4 2012, as compared to 70 deals worth $3.2 billion in Q3 2012. On a year-on-year basis, the number of equity offerings and their values increased in Q4 2012, when compared with 65 deals worth $1.1 billion in Q4 2011.

The IPO market recorded no change in the number of deals and an increase in deal value in Q4 2012. The market recorded three deals worth $147m in Q4 2012, as compared to three deals worth $94m in Q3 2012. Besides, 27 secondary/ follow-on offerings worth $996.2m were reported in Q4 2012, as compared to 26 deals worth $1.2 billion in Q3 2012. The medical equipment industry reported 41 PIPE transactions worth $187.1m in Q4 2012.

Debt offerings, including secondary offerings and private debt placements, recorded a decrease in number and an increase in deal values in Q4 2012 with 24 deals worth $18.7 billion, as compared to 31 deals worth $15.3 billion in Q3 2012.

Debt offerings, including secondary offerings and private debt placements, recorded an increase in the number of deals and deal values in Q3 2012 with 32 deals worth $18.3 billion, as compared to 18 deals worth $3.2 billion in Q2 2012.

The venture capital (VC) market reported an increase in the number of deals and a decline in deal values in Q4 2012 with 253 deals worth $1.4 billion, as compared to 230 deals worth $1.5 billion in Q3 2012. The investments fell with investors exercising caution due to the volatile market conditions. On a year-on-year basis, the number of deals and deal values decreased in Q4 2012, when compared to 255 deals worth $1.5 billion in Q4 2011.

In Q4 2012, venture capitalists focused on investing in growth/expansion stage companies. Of the 253 deals reported in Q4 2012, 124 were start-up stage financing deals worth $463.2m, 86 were growth stage financing deals worth $638m, 31 were later stage financing deals worth $252.2m and 12 were seed stage financing deals worth $9.7m. Intarcia Therapeutics, Inc., Endosense SA, Angel Medical Systems, Inc. and InSightec Ltd. were some of the companies succeeded in securing growth financing from venture capital firms in Q4 2012.

Domain Associates topped the list of venture financing firms by participating in 14 deals worth $345.8m in the last four quarters (Q1 2012 to Q4 2012), followed by New Enterprise Associates with 11 deals worth $444.5m.

For more information on the Global medical equipment mergers market, please click here: Global Medical Equipment Mergers Market
For more information on the Healthcare and Medical market, please click here: Healthcare and Medical Market

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