Apax Partners has agreed to purchase Syneron Medical (NASDAQ: ELOS) for $11 per share in cash in a transaction valued at about $397 million—the latest sign of wellness for a healthcare supplies sector that last year saw an increasing share of private equity interest.
Deal activity in the healthcare devices & supplies industry remained steady in 2016, ticking up to 281 from a total of 280 in 2015, but that occurred against a backdrop of declining PE activity overall. As a share of total PE deals (which declined 8% YoY), healthcare devices & supplies grew from 1.8% to 2%—a minor uptick, but an uptick nonetheless.
In its latest deal in the space, Apax will pay a notable premium to acquire Syneron, an Israeli provider of cosmetic medical products: 15% compared to Syneron's 90-day average closing price as of March 31 and 33% for the 90 days ended February 10, when rumors of a deal first emerged. Apax's agreement include a go-shop period that extends to May 9. The London-based firm closed its ninth flagship buyout fund on $9 billion at the tail end of 2016.