| Medical Equipment Annual Deals Analysis 2010 | | | | M&A including asset transactions in the medical |
| | | | | equipment industry witnessed a decrease of 57% in |
| This report is an essential source of data and trend | | | | the deal value, reporting $18.7 billion in 2009 compared |
| analysis on mergers and acquisitions (M&A) and | | | | to $43.1 billion in 2008. This signifies that most |
| financing in the medical equipment market. The report | | | | companies are taking a skeptical approach to the |
| provides detailed information on M&A, equity/debt | | | | business integration process due to the uncertain |
| offerings, private equity (PE), venture financing and | | | | market conditions, after high consolidation activity in |
| partnership transactions registered in the medical | | | | 2008. Abbott Laboratories' $2.8 billion acquisition of |
| equipment industry in 2009. The report includes detailed | | | | Advanced Medical Optics and Agilent Technologies' |
| comparative data on the number of deals and their | | | | $1.5 billion acquisition of Varian are the two largest |
| value in the last four quarters, subdivided by deal types, | | | | deals of the year. Further, the number of deals |
| segments, and geographies. Additionally, the report | | | | decreased from 528 deals in 2008 to 487 deals in |
| provides information on the top PE, venture capital | | | | 2009. M&A activity was dominant in the in vitro |
| (VC), and advisory firms in the medical equipment | | | | diagnostics segment, registering 88 deals worth $6.6 |
| industry. ( ) | | | | billion, followed by the healthcare IT segment with 79 |
| | | | | deals worth $905 million in 2009. |
| Decreased Investments In The Medical Equipment | | | | |
| Industry In 2009 | | | | Financing Activity Surged Through Debt Offerings In |
| Global investments in the medical equipment declined | | | | 2009 |
| by 15%, registering $73.8 billion in 2009 compared to | | | | Debt offerings, including secondary offerings and |
| $86.9 billion in 2008. The decrease in investments can | | | | private debt placements, were the most prominent |
| primarily be attributed to the concentration of medical | | | | among all financing activities in the medical equipment |
| equipment companies on organic growth opportunities | | | | market, with around $39.8 billion raised in 2009 |
| because of the uncertain economic outlook. Growing | | | | compared to $20.8 billion in 2008. Further, the number |
| economic concern also led to a decrease in | | | | of deals also increased, reporting 114 deals in 2009 |
| investments in 2009, after high business consolidation | | | | compared to 89 deals in 2008. The in vitro diagnostics |
| activity in 2008. The first quarter of 2009 garnered the | | | | market segment was the lead runner, reporting $17.7 |
| most investments, reporting $24.9 billion in spite of the | | | | billion from 38 deals in 2009. Public debt offerings |
| economic uncertainty. Further, the number of medical | | | | contributed the most to the deal value, with $31.5 billion |
| equipment deals increased from 1,675 deals in 2008 to | | | | reported in 2009 compared to $15 billion in 2008, driven |
| 1,790 deals in 2009. The industry witnessed a | | | | by flourishing first quarter investments in 2009 with |
| compound annual growth rate (CAGR) of 11.1% in the | | | | several big ticket deals: Novartis' offering of notes and |
| number of deals from 2005 to 2009. | | | | bonds for $5 billion; Abbott Laboratories' $3 billion public |
| | | | | offering of notes; Eli Lilly's public offering of notes for |
| Mergers & Acquisitions In The Medical Equipment | | | | $2 billion; and Bayer's $1.7 billion public offering of notes. |
| Decreased By 57% In 2009 | | | | |