Medtronic Acquires London-Based Digital Surgery
Med-tech giant Medtronic is looking to the future with its acquisition of London-based Digital Surgery, which is billed as a “pioneer in surgical artificial intelligence.” Digital Surgery also has expertise in data and analytics, along with digital education and training.
“Capabilities and solutions in the data and analytics space play a critical role in our continued focus on advancing minimally invasive surgery – from education and training, to clinical decision support, to reducing cost and unwarranted variability,” said Megan Rosengarten, VP and general manager of the Surgical Robotics business, which is part of the Minimally Invasive Therapies Group at Medtronic, in a statement.
Terms of the transaction were not disclosed, which suggests it’s a relatively small deal for Medtronic. Per the company’s statement, “The transaction is expected to be immaterial to Medtronic’s fiscal 2020 adjusted earnings per share.”
Digital Surgery will remain based in London and its executive team will remain in place. According to Medtronic’s announcement, “there are plans for continued investment and workforce expansion.”
Medtronic previously acquired Israel-based Mazor Robotics in December 2018 for $1.7 billion.
It looks to be a deal that is paying off for Medtronic.
In January, Medtronic CEO Omar Ishrak appeared on CNBC’s “Mad Money” program and told host Jim Cramer, “We’re delighted with the results that we’re seeing and our spine business this last year – ever since I’ve been here – has had its strongest year, and the robot has played a big role in that.”
For its fiscal 2019, Medtronic reported sales of $30.6 billion and net income of $4.65 billion. Medtronic’s fiscal year ends on the last Friday of April. The company employs more than 90,000 people across the globe.
Medtronic relocated its headquarters for tax purposes to Dublin, Ireland, after its blockbuster $50 billion acquisition of Covidien in 2015. But the company’s operational headquarters remain in Fridley.
Last year, Medtronic announced that CEO Omar Ishrak will retire at the end of the company’s current fiscal year. He will be succeeded by Geoff Martha on April 27. Ishrak will remain chairman of the Medtronic board of directors and become executive chairman of Medtronic.
Ishrak joined Medtronic as CEO in June 2011. Twin Cities Business named Ishrak its “Person of the Year” in 2015, in the wake of the Covidien megadeal.
Medtronic will announce its third quarter earnings for fiscal 2020 on Feb. 18.