TORONTO – Pointclickcare Technologies Inc. has followed up a series of private sector investments and purchases with its acquisition of Collective Medical Inc. and its real‐time notification platform for streamlining transitions from one stage of health care to another and reducing unnecessary length of stay and patient admissions. One of this country’s largest software companies, Pointclickcare said the US$500 million plus acquisition will pair its “rich, post‐acute data set” with Collective Medical’s network of more than 1,300 hospitals and other health care organizations across 39 states.
Boston Scientific Corp. has agreed to acquire Preventice Solutions Inc. for $925 million up front and up to an additional $300 million in a potential commercial milestone payment. The former has been an investor in Preventice since 2015 and currently holds an equity stake of about 22%, which is expected to result in a net payment of about $720 million upon closing and a milestone payment of up to roughly $230 million. The acquisition is projected to close by the middle of the year.
Haemonetics Corp. said Wednesday that it will acquire Cardiva Medical Inc., a privately held manufacturer of blood closure systems, for up to $510 million. The all-cash deal expands Haemonetics’ hospital portfolio with two catheter-based devices used to shut off access sites following minimally invasive cardiology and electrophysiology (EP) procedures.
Thermo Fisher Scientific Inc. has inked a definitive agreement to acquire Mesa Biotech Inc., a privately held molecular diagnostics company with a point-of-care (POC) platform, for approximately $450 million in cash. The scientific instruments and testing giant said it will pay an additional $100 million in cash upon the completion of certain milestones. The planned acquisition will expand Thermo Fisher’s franchise of diagnostic test options with a novel platform that enables nucleic acid polymerase chain reaction (PCR) testing at the point of care.
Royal Philips NV will close on its $635 million acquisition of Capsule Technologies Inc. in the first quarter of 2021, continuing the expansion of the Dutch company's remote monitoring capabilities. Capsule's Medical Device Information Platform integrates nearly all medical devices used in hospitals with electronic health records in a vendor-neutral system. The deal has already received approval from the U.S. Federal Trade Commission and the Department of Justice.
The volume of med-tech deals and M&As in 2020 reached impressive levels, well above 2019, primarily due to the demands of a global pandemic, although the disclosed values of those alliances fell dramatically short. Even so, the spotlight that shined on digital health and diagnostics throughout the challenging year has potentially set up the med-tech industry for an influx of attention going forward.
Diagnostics innovator Renalytix AI plc and dialysis giant Davita Inc. partnered to develop a program to identify individuals with early-stage kidney disease and improve outcomes for the 37 million Americans with chronic kidney disease (CKD). The companies plan to launch the collaborative effort in three cities in 2021 to build a diverse, real-world evidence dataset as a base for moving forward.
Steris plc has agreed to buy Cantel Medical Corp. for approximately $3.6 billion, in a cash and stock transaction that unites two key players in the infection prevention space. The combined company offers a number of synergies. Cantel’s medical portfolio is expected to bolster and expand Steris’ endoscopy offerings, with a full-suite of high-level disinfection consumables, capital equipment and services plus single-use accessories.
While the first quarter may be a little slow as the winter COVID-19 surge continues to disrupt business, expect high capital reserves in med tech and life sciences to make 2021 a year for brisk deal activity, according to the 2021 Ernst & Young (EY) M&A Firepower report. In 2020, industry M&A activity fell to the lowest levels since 2014, but the multinational audit and consulting firm found that the industry now has record levels of deal capacity that it is poised to use to accelerate growth coming out of the pandemic.
Just a week into 2021 and Hologic Inc. is planning another acquisition. The company announced that it has agreed to acquire the molecular diagnostics testing company Biotheranostics Inc. for roughly $230 million cash up front. This comes on the heels of completing the acquisition of Somatex Medical Technologies GmbH for about $64 million. The acquisition of San Diego-based Biotheranostics is expected to close in February 2021, pending antitrust clearance.
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