Neurosurgery Focused Integra LifeSciences Bolsters Its ENT Portfolio With $275M Acquisition Deal
Portfolio Pulse from Vandana Singh
Integra LifeSciences Holdings Corporation (IART) has agreed to acquire Acclarent Inc. from Ethicon Inc, a Johnson & Johnson (JNJ) MedTech company, for $275 million in cash, with an additional $5 million contingent on regulatory milestones. Acclarent, specializing in ENT medical devices, will join Integra's Codman Specialty Surgical division, expanding its global market by approximately $1 billion. Acclarent's 2022 revenue was about $110 million with gross margins similar to Integra's average. The deal is expected to close by Q2 2024 and be accretive to Integra's long-range plan. IART shares dropped slightly by 0.49% to $40.72.
December 13, 2023 | 4:20 pm
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NEUTRAL IMPACT
Johnson & Johnson's MedTech company, Ethicon Inc, is selling Acclarent Inc. to Integra LifeSciences for $275 million in cash, with an additional $5 million based on regulatory milestones.
For JNJ, the sale of Acclarent to IART is a strategic move to streamline its MedTech portfolio. The impact on JNJ's stock is likely to be neutral in the short term as the sale is a relatively small transaction for a company of JNJ's size and diversified operations.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Integra LifeSciences is set to acquire Acclarent, which is expected to expand its ENT portfolio and add to its global market. The acquisition is seen as accretive to Integra's long-range plan, with the transaction closing by Q2 2024.
The acquisition of Acclarent is likely to have a positive impact on IART's stock in the short term due to the expansion of its product portfolio and the potential for market growth in the ENT segment. The deal is expected to be accretive, indicating a positive financial impact. However, the slight drop in share price suggests some investor caution.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90