Mergers and acquisitions (M&As) are the acts of consolidating companies or assets, with an eye toward stimulating growth, gaining competitive advantages, increasing market share, or influencing supply chains.
Reasons for M&A
Companies acquire other companies for many reasons, including:
1. Synergies: By combining business activities, overall performance efficiency tends to increase and across-the-board costs tend to drop, due to the fact that each company leverages off of the other company’s strengths.
2. Growth: Mergers can give the acquiring company an opportunity to grow market share without doing significant heavy lifting. Instead, acquirers simply buy a competitor’s business for a certain price, in what is usually referred to as a horizontal merger.
3. Increase Supply-Chain Pricing Power: By buying out one of its suppliers or distributors, a business can eliminate an entire tier of costs. Specifically, buying out a supplier, which is known as a vertical merger, lets a company save on the margins the supplier was previously adding to its costs. Any by buying out a distributor, a company often gains the ability to ship out products at a lower cost.
4. Eliminate Competition: Many M&A deals allow the acquirer to eliminate future competition and gain a larger market share. On the downside, a large premium is usually required to convince the target company’s shareholders to accept the offer. It is not uncommon for the acquiring company’s shareholders to sell their shares and push the price lower, in response to the company paying too much for the target company.
M&A in the Spine Market from 2010 to 2019
We’ve tracked more than 50 acquisitions in the spine space from 2017 through 2010 year to date.
- Alphatec Spine Completes Acquisition of Scient’x Groupe SAS
- Amedica® Corporation Acquires US Spine
- Medtronic Completes Acquisition of Osteotech
- Pioneer® Surgical Technology, Inc. Announces Agreement to Acquire Exclusive Access to the Cequence™ Cervical Plate System From SpineSmith, LP
- Captiva Spine Acquires Proprietary Cervical Plate System, SmartLox™
- Johnson & Johnson and Synthes Announce Definitive Merger Agreement – DePuy
- Globus Medical Announces the Acquisition of Facet Solutions Inc.
- Integra LifeSciences Acquires SeaSpine
- Premia Spine Acquires Assets of Impliant
- Orthovita, Inc. Agrees To Be Acquired by Stryker Corporation
- NuVasive Signs Agreement to Acquire Impulse Monitoring
- Alphatec buys Phygen
- Medtronic completes acquisition of Kanghui
- Precision Spine Acquires Spinal USA, LLC & Precision Medical of Mississippi, LLC
- RTI Biologics intents to acquire privately held Pioneer Surgical Technology
- Biomet Announces Definitive Agreement to Acquire Lanx, Inc.
- Spinal surgery firm TranS1 to acquire Baxano for $23.6M
- NuVasive buys spine implant manufacturer ANC
- Zimmer to Buy Biomet for $13.35 Billion
- Globus Medical Announces Acquisition of Robotics Developer Excelsius Surgical
- Globus Medical Announces Acquisition of Transplant Technologies of Texas
- Amendia Continues to Expand by Acquiring the Business of Custom Spine
- Amendia, Inc. Completes SpineSelect Acquisition
- Globus Medical Announces the Acquisition of Branch Medical Group, Inc.
- Integra to Complete Tax-Free Spin-Off of SeaSpine on July 1, 2015
- SeaSpine Signs Definitive Agreement to Acquire Expandable Interbody Platform Technologies
- SpineVision® SA announces Acquisition by Norgine Ventures B.V.
- Merit Medical Acquires DFINE, Inc.
- Alphatec Holdings Completes Sale of International Business to Globus Medical
- Amendia Announces Transaction with Kohlberg & Company
- NuVasive takes over Ellipse Technologies for $410M
- VEXIM to be Acquired by Stryker Corporation
- Exactech to be acquired by private equity firm
- NuVasive Announces Acquisition Of Vertera Spine
- Amendia Announces Acquisition of Spinal Elements
- ChoiceSpine acquires Exactech’s spine assets
- Wenzel Spine Announces Acquisition of Interspinous & Facet Fixation Product Platforms
- Centinel Spine Completes Acquisition of prodisc Assets
- DePuy Synthes Acquires Interventional Spine Expandable Cage Technology to Accelerate Growth in Spine
- NuVasive To Acquire SafePassage
- Globus Medical acquires robotic surgical KB Medical
- A-SPINE Acquired by United Orthopedic Corporation.
- Medtronic to Acquire Mazor Robotics
- RTI Surgical Announces Acquisition of Zyga Technology, Inc.
- Orthofix Announces Agreement to Acquire Spinal Kinetics
- CoreLink Acquires Expanding Orthopedics, Inc.
- Fuse Medical, Inc. Completes Acquisition of Maxim Surgical
- K2M Group Holdings, Inc. Announces Definitive Agreement To Be Acquired by Stryker Corporation
- Amedica Announces Agreement to Sell Spine Business to CTL Medical
- Johnson & Johnson Medical GmbH Acquires Emerging Implant Technologies GmbH to Enhance Global Offering of Interbody Spine Implants
- Globus Medical Acquires Surgimap®
- RTI Surgical® to Acquire Paradigm Spine
- Altus Capital Partners, Inc. Acquires ChoiceSpine, LP
- KYOCERA to Purchase Major Assets of U.S.-based Renovis Surgical Technologies, Inc.
- SpineSource® Acquires French Medical Device Technology
- WishBone Medical Acquires Indiana Based Spinal Systems Company
- Boston Scientific Announces Agreement To Acquire Vertiflex, Inc.
- Medtronic Enters Into Definitive Agreement to Acquire Titan Spine
- Celling Spine Acquires Assets of Link Spine
- Osseus Fusion Systems Announces the Acquisition of SIJ Surgical
- CARLSMED and Precisive Surgical Announce Merger
- Stryker announces definitive agreement to acquire Mobius Imaging & Cardan Robotics
SOURCES:www.thespinemarketgroup.com and https://www.investopedia.com/ask/answers/why-do-companies-merge-or-acquire-other-companies/