
Jan 12 (Reuters) - Medtronic has "significant firepower" to pursue acquisitions as the medical device maker evaluates opportunities to expand its portfolio, executives said at a major industry conference that kicked off on Monday in San Francisco.
The medical device maker has been eyeing tuck-in deals as it seeks to diversify its portfolio, particularly in cardiology and neuroscience, with CEO Geoff Martha in November saying that they would prefer companies in "early stage or close to market."
The company's balance sheet gives it flexibility to execute a "meaningful number" of transactions without financial strain, Chief Financial Officer Thierry Piéton said at the J.P. Morgan healthcare conference on Monday.
"What's changing versus the last few years is coming back to doing more M&A," he said, adding that Medtronic's dividend policy remains unchanged.
Medtronic, which makes devices ranging from pacemakers to insulin pumps, reported a 3.7% rise in revenue to $33.6 billion in fiscal 2025.
The company is targeting deals in the low- to mid-single-digit billions of dollars, choosing targets that will supplement its internal R&D efforts, Martha said on Monday. The company has set up a new committee at the board level to move faster on deals, he added.
The executives said Medtronic is focused on two themes, expanding in areas where it already competes and acquiring enabling technologies for procedures such as cardiac ablation and surgical robotics.
The company has spent recent years improving operations by divesting non-core units and plans to spin off its diabetes business as MiniMed Group through a U.S. initial public offering following its struggles over the last few years.
It also added two new directors to its board last year after activist investor Elliott Investment Management emerged as one of its largest shareholders.
Medtronic now sees itself positioned to pursue strategic opportunities.
"We've earned the right to do these acquisition, and we've got the capacity, so we're going to step up," Piéton said.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Alan Barona and Leroy Leo)
latest_posts
- 1
Factbox-Weight-loss drug developers line up to tap lucrative market as competition heats up - 2
French and Malaysian authorities are investigating Grok for generating sexualized deepfakes - 3
Israel reports killing another senior Iranian oil official - 4
Motivational Travel Objections for History Buffs - 5
Step by step instructions to Look at Compact disc Rates: A Thorough Aide
California warns of death cap mushrooms outbreak resulting in 3 deaths
‘Harry Potter and the Philosopher’s Stone’ trailer is raising eyebrows among Potterheads: ‘Where’s the whimsical color?’
Holden Commodore Turbo BT1 Police Interceptor Offered for Sale in Australia
The Universe of Impeccable Pearls: A Manual for Valuable Gems
A Manual for Pick Dependable Vehicle Rental Administrations For 2024
Flying without a Real ID? That'll soon cost you $45, TSA says.
EU delegation urges China to tighten export controls
U.S. overhauls childhood vaccine schedule, recommends fewer shots
2024's Hot Games: Must-Play Titles of the Year













