Zydus Lifesciences has entered into exclusive negotiations to acquire a controlling shareholding stake in French medtech company Amplitude Surgical for Rs 257 million (Rs 2,446 crore). The move would mark the Ahmedabad based company’s foray into the global medtech space.
As per the deal, Zydus will initially pay Rs 256.80 million (Rs 2,446 crore) to acquire 85.6% of the share capital of Amplitude Surgical at a price of Rs 6.25 per Amplitude Surgical share.
Subject to closing of the controlling block acquisition, Zydus would file a mandatory cash tender offer for all the remaining shares in the French company, at the same price of Rs 6.25 per Amplitude Surgical share. The valuation for the 100% stake is about Rs 300 million.
“With this, we will be making a foray into the global medtech space. We believe that this was a natural extension in the field of medical technologies. Our commitment to quality excellence, continuous investments in R&D and expertise in manufacturing will guide us in this foray into the highly specialised medtech products, adding a new dimension to our operation,” Sharvil Patel, managing director Zydus Life Sciences Limited, told reporters over a conference call.
“This foray helps us in terms of globalising our plans for the med devices play that we want to do going forward,” he pointed out.
The negotiations are with PAI Partners, Amplitude Surgical’s management, as well as two minority shareholders to acquire the majority stake, the Ahmedabad-based drug maker said in a regulatory filing. The deal will be funded by a mix of both “internal accruals and some small dose of debt,” Patel said. The company had net cash of Rs 3,092 crore as on December 31, 2024. The scrip closed on Tuesday at Rs 899.90 on the BSE, up 0.75%.
Amplitude Surgical is a European MedTech leader in high-quality, lower-limb orthopaedic technologies. The company provides numerous value-added innovations to meet the needs of patients, surgeons and healthcare facilities including design and development of knee and hip prostheses, which are implanted in place of damaged or worn-out joints. In fiscal year ended June 30, 2024, Amplitude Surgical generated sales of 106.0 million and EBITDA of 27.1 million on a consolidated basis under IFRS.
Patel said: “Over the next five seven years we see significant opportunity to grow and build a very sizable medical devices business for the organisation and in three areas (arthroplasty, cardiology and nephrology) both via organic means as well as inorganic means and really scale up this sector.”
“This will play to the point of what we said when you want to talk about being patient centric and talking about beyond the medicine or beyond the pill, this offers the right area for Zydus in terms of its capabilities on the technology side and on the patient centricity side,” he added.
