In a bold move that underscores its ambitions in the global medical technology sector, India-based Zydus Lifesciences Ltd. has announced a blockbuster agreement to acquire French orthopedic powerhouse Amplitude Surgical SA. The deal, valued at €256.8 million ($280 million), will see Zydus take control of the company in phases, marking a pivotal expansion into the European market.

The acquisition agreement was struck with PAI Partners, the private equity giant that currently owns a significant stake in Amplitude Surgical, along with key management and other minority shareholders.

A Two-Stage Takeover: Zydus Tightens Its Grip

In the first stage of the deal, Zydus will acquire an 85.6% interest in Amplitude Surgical. Following this, the Indian firm will move to secure the remaining stake at €6.25 per share, leading to a full delisting of Amplitude Surgical from Euronext Paris—a decisive step in solidifying its control.

The €6.25-per-share valuation represents a jaw-dropping 80.6% premium over the previous day’s closing price, a clear testament to Zydus’ confidence in Amplitude Surgical’s growth trajectory.

Zydus Expands Its MedTech Arsenal

Best known for its work in interventional cardiology, Zydus has made a name for itself producing life-saving medical devices such as catheters, balloons, and stents—vital tools in treating heart conditions. This acquisition marks a natural evolution, broadening its footprint into orthopedic prostheses, a fast-growing sector as global demand for joint replacement surges.

"In Amplitude Surgical, we see several medium-term and long-term growth opportunities with respect to portfolio, capabilities, manufacturing, and geographies," said Sharvil Patel, Zydus' Managing Director, hinting at a broader strategy to integrate and scale up the new business.

Amplitude Surgical, a leading player in knee and hip prostheses, has been riding a wave of success, reporting €106 million in sales for the fiscal year ending June 30, 2024.

Regulatory Green Light Expected by Mid-2024

The acquisition is expected to be finalized by June 2024, pending regulatory approvals from France’s Autorité des Marchés Financiers (AMF).

French law firm Darrois Villey Maillot Brochier is advising Zydus on legal matters, while Willkie Farr & Gallagher LLP is representing PAI Partners.

On the financial front, BNP Paribas is exclusively advising Zydus, while Rothschild & Co. is working with PAI Partners.

A High-Stakes Play in the $500B MedTech Market

The acquisition positions Zydus as a formidable force in the global medical device market, which is valued at over half a trillion dollars, according to Statista. With aging populations and rising demand for advanced healthcare solutions, orthopedic implants represent one of the fastest-growing segments.