Merger & acquisition activity surged this year in the medical device industry, with both the number and value of deals climbing to new heights after years of decline, according to a MassDevice.com analysis.

The number of deals during 2014 rose 39.0% to 57, from 41 in 2013, according to our look at transactions with announced values. But the real news is the surge in valuations: The total value of those 57 deals soared 504.1% to $86.39 billion, compared with just $14.3 billion last year.*

Nearly half of that value represents the blockbuster, $43 billion union of Medtronic (NYSE:MDT) and Covidien (NYSE:COV). Excluding that deal, the other 56 were collectively worth $43.4 billion – incredibly, still a whopping 203.4% over 2013.

The 10 biggest deals were worth a collective $79.6 billion ($36.6 billion absent Medtronic/Covidien):

1. Medtronic: $43 billion for Covidien
2. Zimmer: $13.45 billion for Biomet
3. Becton Dickinson: $12.2 billion for CareFusion
4. Wright Medical: $3.3 billion for Tornier
5. Danaher: $2.14 billion for Nobel Biocare
6. Steris: $1.9 billion for Synergy Health
7. Smith & Nephew: $1.7 billion for ArthroCare
8. Sterigenics: $826 million for Nordion
9. Merz: $600 million for Ulthera
10. CareFusion: $500 million for GE Healthcare’s Vital Signs

Several companies were particularly acquisitive this year, making multiple buyouts across the space:

• Medtronic: 6 deals for a total of $43.97 billion ($965 million excluding Covidien)
  • Covidien ($43B)
  • NGC Medical ($350m)
  • Sapiens ($200m)
  • Tyrx ($160m)
  • Corventis ($150m)
  • Visualase ($105m)
• Covidien: 5 deals worth at least $186 million
  • New Wave Surgical ($100m)
  • Given Imaging ($86m)
  • Sapheon (not disclosed)
  • Reverse Medical (not disclosed)
  • Zephyr Technology (not disclosed)
• Stryker: 4 deals worth at least $667 million
  • Small Bone Innovations ($375m)
  • Berchtold Holding ($172m)
  • Patient Safety Technology ($120m)
  • Pivot Medical (not disclosed)
• Becton Dickinson: 3 deals worth at least $12.2 billion
  • CareFusion ($12.2B)
  • Alverix ($40m)
  • GenCell Biosystems (not disclosed)
• Wright Medical: 3 deals worth a total of $3.4 billion
  • Tornier ($3.3B)
  • Solana Surgical ($90m)
  • OrthoPro ($36m)
• Sorin Group: 3 deals worth at least $40 million
  • Respicardia ($20m)
  • Oscor cardiac lead assets ($20m)
  • Bioengineering Labs cardiac cannulae assets (not disclosed)

Other notable multiple acquirers include:

• Danaher: Nobel Biocare for $2.14 billion and Devicor Medical, by its Leica division, for an undisclosed amount;
• St. Jude Medical: CardioMEMS for $455 million and
  NeuroTherm for $200 million;
• Boston Scientific: Bayer’s interventions assets for $415 million and its remaining stake in IoGyn for $65 million; and
• Spectranetics: AngioScore for $230 million and Covidien’s Stellarex balloon assets for $30 million as part of the Medtronic buyout.

*  Figures include transactions announced or concluded as of Dec. 12, 2104; deal values include value of any announced milestones. Return.