Private equity group Permira has made an offer to acquire LivaNova, the US-listed manufacturer of medical devices, two people familiar with the case say.
The offer, made in mid-February, values the company’s stock at more than $ 80, the people said. That’s a premium over their price of $ 75 on Wednesday, giving the company a market value of $ 3.7 billion.
Talks are ongoing, but there is no assurance that a deal will be reached, the people warned.
LivaNova manufactures medical equipment such as life support machines, heart valves and oxygenators and has nearly 4,000 employees, according to its website. It is based in London, but listed on the Nasdaq Stock Exchange. It was taken off the London Stock Exchange in 2017.
The company was formed from a merger in 2015 of Sorin, an Italian manufacturer of medical devices, and the American Cyberonics group.
Shares of LivaNova plummeted last March when the coronavirus pandemic started, but have risen in recent months and are up more than 50 percent since the beginning of November. They rose to $ 78.50 after the The Washington City Times reported Permira’s approach on Wednesday.
Permira declined to comment.
LivaNova sales fell 13.8 percent to $ 934 million in the year to December 2020, according to the latest earnings report, which says it was “primarily related to Covid-19.” It expects sales to rise 13 percent by 2021, it said.
The Permira approach is because private equity groups, fueled by record-sized funds, are investing greater amounts of money into buying health and technology companies less affected by the coronavirus pandemic than many others or, in some cases, benefiting from it.
CVC Capital Partners last month bought stakes in two UK-based companies whose software supports the rollout of the NHS coronavirus vaccine, in an effort to capitalize on Britain’s success in implementing the jabs by taking the technology internationally. to sell.