Shares of Zydus Lifesciences Ltd were trading in the red and 3% lower on 12 March after the board of Zydus Lifesciences approved the acquisition of an 85.6% stake in the French business Amplitude Surgical for a total of €256.8 million.
A floor price of €6.25 per share has been set for the acquisition of Amplitude Surgical.
If the conditions of the tender offer are met, Zydus Life plans to delist Amplitude Surgical from Euronext Paris and move forward with the compulsory acquisition of the remaining shares owned by minority owners.
Following the completion of the required tender offer, the business wishes to fully acquire and manage all of Amplitude Surgical’s equity shares. As of 30 June 2024, Amplitude Surgical recorded revenue of €106 million.
Founded in 1997, Amplitude Surgical is based in France. It is renowned in a number of nations, including France, Brazil, Australia, Germany, Switzerland, Belgium, and South Africa, and specialises in offering excellent lower-limb orthopaedic products and services.
Because of its extensive distribution network and commitment to stringent regulatory requirements, the company has seen consistent revenue growth throughout the years. Based on the audited consolidated financial statements under IFRS, Amplitude Surgical reported revenues of €87.6 million in FY22, €106.0 million in FY24, and €100.2 million in FY23.
Amplitude Surgical leads the market in the highly desirable orthopaedics industry thanks to its extensive distribution network and global presence. With ongoing product development and computer-assisted programs, its reach should continue to expand, and its superior products meet the most stringent rules.
The proposed acquisition will give Zydus a strategic platform to fulfil its global MedTech ambitions, which is a natural development of its previously shown expertise in life sciences and wellness. Additionally, Amplitude Surgical’s advantages in foreign markets can be used through this acquisition.
Dr. Sharvil Patel, Managing Director of Zydus Lifesciences, said, “We believe this was a natural extension in the field of medical technology. Our commitment to quality excellence, continuous investments in R&D and expertise in manufacturing will guide our foray into highly specialised MedTech products, adding a new dimension to our operations.”
Dr Patel added that they see several mid-term and long-term growth opportunities with respect to its portfolio, capabilities, manufacturing and geographies.
At 12:01 pm, the shares of Zydus Lifescience were trading 2.43% lower at Rs 877.95 on NSE.
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