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
Vote In favor of Your Number one Kind Of Food Conveyance Administration - 2French Senate debates social media ban for under-15s
- 3This ‘CSI: Miami’ star spent years solving crimes on TV. Then she became the target of one herself.
- 4Warming winters lead to more nitrate pollution in the drinking water near farms
- 5The breakout star of NASA's Artemis 2 moon mission isn't an astronaut — it's the space toilet
- Oldest sequenced RNA reveals details about a mammoth’s final moments 40,000 years
- 5 Morning Schedules That Stimulate Your Day
- HR exec caught on Coldplay 'kiss cam' with boss finally breaks her silence: 'I made a bad decision and had a couple of High Noons'
- In blow to Lula, Brazil Congress revives controversial environmental bill
- What exactly is the Upside Down in 'Stranger Things'? The wormhole revelation, explained.
- Radiate brilliantly: The 5 Precious stone Rings to Purchase in 2024
- Claim that Israel opened 'sewage dam' into Gaza's main river undersells sanitation crisis
- Brazilian cardinal orders a popular Catholic priest to go offline following right-wing attacks
- Gulf countries continue to face Iran attacks as criticial energy infrastructure at risk
