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
Osteoporosis, the silent disease, can shorten your life − here’s how to prevent fractures and keep bones healthy - 2Four new luxury hotel openings in Italy you need to know about
- 3France to build new nuclear aircraft carrier, Macron says
- 4RFK Jr.'s vaccine panel delays hepatitis B shot vote after chaotic meeting
- 5How Google, Microsoft, Walmart, and other corporate giants are preparing for an aging workforce
- Monetary Freedom Guide: Plan Your Future
- Shah Capital pushes for Novavax sale, warns of proxy fight
- Greece eyes migrant repatriation centres outside the EU
- Army commander convicted of Guinea stadium massacre dies in prison
- NAFFIC, AWARE claim first China-EU DPP for textiles
- NASA is sending astronauts back to the moon. Can you see the Artemis 4 landing sites from Earth?
- 2023's Best 10 Cell phone Advancements You Can't Miss
- Netanyahu leads meeting on West Bank riots, Katz defends axing administrative detention for Jews
- From Overpowered to Coordinated: Individual Accounts of Cleaning up
