The companies, which are already partners in a CRM join venture in the People’s Republic, said the sale for LivaNova’s 900-worker CRM business is slated to close during the second quarter next year. LivaNova, formed by the $2.7 billion merger of Italy’s Sorin and Cyberonics in October 2015, said in September that it was putting the CRM business on the auction block. The business pulled in sales of $249 million last year.
“The CRM business franchise is a global business and strong regional player with attractive assets, a robust pipeline and growth potential. Its strong position in Europe complements our leadership position in China and growing presence in the U.S. and emerging markets, enabling us to further strengthen each other’s worldwide reach. Meanwhile, with the commitment and dedication of its employees, combined with the precision and innovation of the technology portfolio of the CRM business, I am confident that MicroPort and the CRM business can grow together – faster, better and stronger – in the global arena,” MicroPort chairman & CEO Zhaohua Chang said in prepared remarks. “This combination represents a great opportunity to build upon our ongoing commitment and expertise to accelerate the development of new CRM products. We are committed to dedicating the focus and the necessary resources to fully leverage and maximize the business’ potential. We look forward to welcoming CRM’s talented employees to the MicroPort family.”
“This transaction represents a great outcome for LivaNova, our CRM business franchise and MicroPort,” added LivaNova CEO Damien McDonald. “The sale will enable us to focus on LivaNova’s areas of strength and market leadership in our cardiac surgery and neuromodulation businesses. With this divestiture, we are building the right foundation. We are focusing our portfolio on businesses that contribute to our growth and drive shareholder value. In addition to the implementation of other initiatives, completion of this milestone will allow LivaNova to improve margins, drive profitability and deliver on our commitments to shareholders. We will continue to take actions that strengthen our position as a focused med-tech innovator dedicated to improving the lives of patients around the world.
“We have worked with the team at MicroPort over the past four years as a joint venture partner in MicroPort Sorin Cardiac Rhythm Management Co. Ltd. and have a great deal of respect for their organization and commitment to innovative science. We believe that in MicroPort, our CRM business franchise has found the ideal home to reach its full potential. We expect that the acquisition of the business franchise by MicroPort, a leading global medical device company, will ensure continued growth and development for the business, opportunities for its employees and benefits for the physicians and patients who rely on these lifesaving products,” McDonald said.
LivaNova said it expects the sale to cut 5% to 10% from its adjusted earnings per share and 20% from the top line this year, after it begins reporting the CRM numbers as a discontinued operation.
For its part, MicroPort said the acquisition isn’t expected to affect its books this year.
MicroPort shares closed down -1.1% at $1.152 (HK$9.00) apiece today in Hong Kong. LIVN shares were down -0.3% to $84.11 apiece in mid-morning trading.
($1 = HK$7.81219)
The post LivaNova to deal CRM biz to MicroPort for $190m appeared first on MassDevice.
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