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
WHO suspends medical evacuations from Gaza following death of contractor in 'security incident' - 2Dozens of hidden star streams found in the outskirts of our Milky Way galaxy
- 3At least 36 dead in major fire in Hong Kong residential blocks
- 4'Supergirl' drops 1st teaser trailer: Watch Milly Alcock as Kara Zor-El and the return of Krypto the Superdog
- 5Vote in favor of your Number one Sort of Cap
- Artemis II astronauts make long-distance call to the space station as they head home from the moon
- Federal judge upholds Hawaii's new climate change tax on cruise passengers
- Manual for Picking Coastline Travel
- Did Japan’s PM Actually Back the Memecoin Bearing Her Name?
- A definitive Manual for the Over-Ear Earphones
- Israel Police arrest twenty-one as anti-war protests grow despite broad support for Iran war
- The Magnificence of Do-It-Yourself Skincare: Regular Recipes and Tips
- Artemis II crew cleared to depart Earth orbit, head for moon
- How mountain terraces have helped Indigenous peoples live with climate uncertainty
