Permira launches bid for $ 3.7 billion medical device maker LivaNova

Private equity group Permira has made an offer to acquire LivaNova, the U.S.-listed medical device maker, two people familiar with the matter said.

The offer, made in mid-February, values ​​the company’s shares at more than $ 80, people said. That’s a premium over their price of $ 75 on Wednesday, which gave the company a market value of $ 3.7 billion.

Talks are underway, but there is no certainty that a deal will be reached, people have warned.

LivaNova produces medical equipment such as life-saving machines, heart valves and oxygenators and has nearly 4,000 employees, according to its website. It is based in London but listed on the Nasdaq stock exchange. He retired from the London Stock Exchange in 2017.

The company was founded in a merger in 2015 by Sorin, an Italian manufacturer of medical devices, and the American group Cyberonics.

LivaNova shares fell in March of last year when the coronavirus pandemic took hold, but they have risen in recent months and are up more than 50% since early November. They rose to $ 78.50 after the Financial Times reported Permira’s approach on Wednesday.

Permira and LivaNova both declined to comment.

LivaNova sales fell 13.8% to $ 934 million in December 2020, according to its latest earnings report, saying it was “primarily related to Covid-19”. He expects sales to increase by as much as 13% in 2021, he said.

The Permira approach comes as private equity groups, fueled by record-sized funds, are investing larger sums in the purchase of health and tech companies that have been less affected by the coronavirus pandemic than many others or, in some cases, have benefited from it.

CVC Capital Partners last month poles purchased in two UK-based companies whose software underpins the deployment of the NHS coronavirus vaccine, with the aim of capitalizing on Britain’s success in deploying jabs by selling the technology internationally .

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