As Ahmedabad-based Zydus Lifesciences expands its presence in the medical devices segment, the company announced on Tuesday that its board of directors has approved the acquisition of 85.6% equity shares of orthopaedic technology firm Amplitude Surgical SA in France for €256.8 million.
At the same €6.25 per share, Zydus will make a mandatory cash tender offer for Amplitude's remaining shares, which could lead to a full acquisition of €300 million (Rs 2,850 crore) and delisting from Euronext Paris. Following the announcement during market hours on Tuesday, Zydus' stock saw a slight increase on the BSE.
In addition to premiums of 88.2 percent and 92.2 percent over the three-month and six-month volume-weighted average prices, respectively, the acquisition price represents an 80.6 percent premium over Amplitude Surgical's most recent closing price on March 10. Regulatory approval, including that of the French Ministry of Economy, is required for the transaction. It is anticipated that the deal will close in the first half of the year.
Zydus Lifesciences' revenue reached Rs19,547 crore in FY24, and for 9MFY25, it increased revenue by 19% year on year to Rs 16,713.6 crore, with Ebitda at Rs 4,933 crore (up 31%) and net profit of Rs 3,354.6 crore (up 25%). The transaction will be funded using a combination of debt and internal accruals.
According to a Mumbai-based analyst, Zydus has been attempting to build a medtech business as a diversification strategy for some time, but the venture is still in its early stages. "We expect this segment's revenues to increase over the next 18-24 months as products are commercialized. The analyst added that acquiring Amplitude will provide it with geographical access.
Leading the way in lower-limb orthopaedics technology in Europe, Amplitude Surgical focuses on creating knee and hip prostheses to replace worn-out or damaged joints.
Through investments in manufacturing capabilities, research and development, international expansion, and the creation of new products, PAI Partners' Mid-Market Fund has helped Amplitude Surgical grow dramatically over the past four years.
For the fiscal year that concluded on June 30, 2024, Amplitude Surgical made €27.1 million in EBITDA and €106.0 million in sales on a consolidated basis under IFRS. With an EBITDA margin of roughly 25.4 percent (unaudited figures), Amplitude Surgical's consolidated sales for the six months ending December 31, 2024, were €51.5 million, up 5% year over year at current exchange rates.
