Medtronic (NYSE:MDT) said today that it bought out the remaining 70% share of NGC Medical SpA in a deal valuing the Italian hospital management provider at $350 million.
NGC Medical manages the cardiovascular suites, operating rooms and intensive care units at nearly 30 hospitals in Italy and is "rapidly expanding its service offerings throughout Europe, the Middle East and Africa," according to a press release. Medtronic had owned a 30% stake in NGC, according to the release, and plans to have it serve as its managed services operation in its hospital solutions segment.
"The unit will operate as a separate entity, continuing its long-standing commitment of being a brand-agnostic partner to hospitals," Medtronic said.
It’s the 2nd acquisition the Fridley, Minn.-based medical device company has announced in as many days. Yesterday Medtronic said it paid $200 million in cash to acquire Holland’s Sapiens Steering Brain Stimulation and its deep-brain stimulation technology. Neither Medtronic nor Covidien (NYSE:COV) are letting their pending merger get in the way of their other acquisition efforts. Last week Covidien snapped up Reverse Medical and its line of vascular devices for an unspecified amount.
"I am delighted that NGC will join Medtronic and add to our growing offering to hospitals and health systems. As we are all acutely aware, current models of delivering healthcare are not sustainable, and Medtronic is intent on finding new ways to partner with physicians, hospital systems, patients, payers and governments around the world to meet their cost and access challenges and to deliver high quality healthcare," Medtronic’s EMEAC president Rob ten Hoedt said in prepared remarks. "As the world’s leading medical device manufacturer, we have the technology, expertise, broadest portfolio of products and therapies, and the financial strength to provide unique solutions to hospitals. Medtronic has made significant progress over the past year since launching our hospital solutions business. NGC’s managed services expertise further enhances this momentum, making the combined entity an ideal partner for hospitals."
"We are pleased to be part of Medtronic and to have the opportunity to apply the expertise, services and solutions we have developed over the past 30 years to a much broader group of hospitals and healthcare providers. As part of Medtronic’s hospital solutions business we are well-positioned to help solve the challenges that healthcare systems are currently facing," NGC CEO Paolo Cremascoli said in prepared remarks.
