Today Medicrea announced that it entered into a tender offer agreement to be acquired by Medtronic at a price of €7 (USD $8.01) per share. The acquisition is expected to close by the end of 2020.
As we wrote in January 2020, Medicrea has been actively engaged in discussions with U.S.-based spine players. At the time, the company described a competitive bidding process developing around its UNiD Adaptive Spine Intelligence (ASI) platform for pre-operative planning. The software uses predictive modeling and sophisticated algorithms that measure and digitally reconstruct the spine to its optimal profile.
The move aligns with the aggressive acquisition strategy during the COVID pandemic that Medtronic CEO Geoff Martha outlined recently. He said, “I think it is a good time to do M&A. Asset prices are down. We can play offense. Our focus remains the same on tuck-ins. I’m partial to the tuck-ins that are more meaningful and can affect our growth rate, our long-term growth rate. We don’t buy growth; we grow what we buy. There are some opportunities that I felt were out of our reach, too expensive before and now are more in line with what we think are reasonable returns for those investments.”
The integration of ASI strengthens Medtronic’s integrated procedure solution of surgical planning and delivery. The technology could be an important differentiator for Medtronic’s enabling technology portfolio in the pandemic-stricken market. Not only did cash-strapped hospitals purchase few robotic systems in 1Q20, a May survey by analysts with Wells Fargo found that fewer surgeons are planning to use robotics as they work their patient backlogs.