Zydus Lifesciences to acquire 85.6% stake in Amplitude Surgical for $280 million in blockbuster deal

Ahmedabad-based Zydus Lifesciences Limited will acquire an 85.6% stake in European medtech firm Amplitude Surgical for $280 million from private equity firm PAI Partners, Amplitude Surgical’s management, and two minority shareholders, the company said in a statement.

The acquisition price represents an 80.6% premium over the last closing price as of March 10 and premiums of 88.2% and 92.2% over the 3-month and 6-month volume-weighted average prices of Amplitude Surgical, respectively. Following the closure of the deal, Zydus will file a mandatory simplified cash tender offer for all remaining shares in Amplitude Surgical at the same purchase price, the company said.

Amplitude Surgical is a leader in high-quality lower-limb orthopaedic technologies. The company provides numerous value-added innovations to best meet the needs of patients, surgeons, and healthcare facilities. This includes the design and development of knee and hip prostheses, which are implanted to replace damaged or worn-out joints.

“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. In Amplitude Surgical, we see several medium-term and long-term growth opportunities with respect to portfolio, capabilities, manufacturing, and geographies,” Sharvil Patel, Managing Director of Zydus Lifesciences, said.

Olivier Jallabert, Founder and CEO of Amplitude Surgical, will remain involved in the company even after the acquisition.

“The Amplitude Surgical team and I are delighted to join Zydus. This acquisition by a global healthcare leader is a testament to the successful development of the company over the last 25+ years, originally as a national orthopaedics challenger and today as a European leader,” Jallabert said.

In the fiscal year ended June 30, 2024, Amplitude Surgical generated sales of about $115 million.

“We are delighted to have supported Amplitude Surgical's transformation into a European leader in lower-limb orthopaedics, with a particular focus on innovation. Over the last four years, the company has reinforced its market position, delivered strong financial performance based on continuous product development, successfully disposed of a non-core business, and streamlined operational processes while developing a new state-of-the-art manufacturing facility in France and an innovative surgical robot,” Stefano Drago, a Founding Partner of PAI Mid-Market Fund, PAI Partners, said.

BNP Paribas is acting as the exclusive financial advisor, and Darrois Villey Maillot Brochier is acting as the legal advisor to Zydus.