
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
Investigate Something else for Less: Financial plan Travel Objections - 2
Drones haven't won the fight in Ukraine. That matters as the West learns new ways of war. - 3
Israel and Lebanon's Hezbollah continue to trade attacks - 4
A Manual for Nations with Extraordinary Food - 5
High Court weighs Assenheim appeal over release of Feldstein interview raw footage
Visiting This Japanese City Just Got A Little More Expensive (Here's What Travelers Should Know)
5 Breakout Stars in Ongoing television Series
Rebecca Gayheart on her 'very complicated' relationship with Eric Dane: 'I am always going to want the best for him'
Astronomers discover never-before-seen celestial object: "Cloud 9"
Watch live as near-Earth asteroid Eros buzzes the Andromeda Galaxy on Nov. 30 (video)
What's your #1 tone
2024 Moving Styles for Kitchen Redesigns
Germany sees third consecutive diesel price record after rule change
Pick Your #1 game to observe













