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
Survey: Canteen Cups With Great Warm Protection Impact - 2Shrapnel hits across central Israel, injuring several, causing property damage
- 3Solar storms can trigger auroras on Earth. This star’s explosion could destroy a planet’s atmosphere
- 4Manual for extravagance SUVs for seniors
- 5Bolsonaro briefly leaves Brazilian prison for medical tests after a fall from his bed
- A few Up-to-date Sacks - Stylish Young ladies Shouldn't Miss
- Vote In favor of Your Favored Video Conferencing Administration
- An Extended time of Careful Nurturing: Individual Bits of knowledge on Bringing up Youngsters
- 37 Things Just Individuals Experiencing childhood during the 80s Will Comprehend
- Toilet rats? Washington health officials warn of possible rodents in sewer systems after floods
- Shipping: The Corridors of Trade and the Coming of Another Period
- Aspirin can prevent a serious pregnancy complication — but too few women get it, new report suggests
- These 2 moon rovers used cameras and lasers to hunt for simulated water ice — and one looks like WALL-E
- Windows to the Previous: An Excursion Through the World's Notable Engineering
