Zydus Lifesciences' Strategic Leap into MedTech: A High-Stakes Acquisition of Amplitude Surgical

In a bold move to diversify its portfolio, Zydus Lifesciences Limited has entered a landmark acquisition of a controlling stake in Amplitude Surgical SA, a French medical technology firm specializing in orthopedic innovations. The deal, valued at €256.8 million, underscores Zydus’s ambition to capitalize on the growing MedTech sector while expanding its footprint in global healthcare.

The Deal Structure: A Premium Play for Majority Control

Zydus will acquire 85.6% of Amplitude Surgical’s shares through a phased approach, starting with a €6.25 per-share purchase of 75.4% from PAI Partners, CEO Olivier Jallabert, and other managers. The remaining shares were secured through prior agreements with minority shareholders. The total consideration represents a steep premium:
- 80.6% above Amplitude’s closing price on March 10, 2025
- 92.2% above its 6-month volume-weighted average price

This premium signals Zydus’s confidence in Amplitude’s growth potential and the strategic value of its proprietary technologies.

The Strategic Rationale: Why MedTech Matters

Amplitude Surgical’s niche in lower-limb orthopedics positions it as a key player in a high-demand market. Its innovations, such as the AMPLIVISION® CAS system and the E.T.O.I.L.E® platform, cater to a growing global need for advanced surgical tools. With sales of €106.0 million in FY2024 and a 25.4% EBITDA margin, Amplitude’s financial health aligns with Zydus’s goal to diversify beyond its traditional pharma focus.

The acquisition also taps into India’s push to develop its MedTech sector, labeled a “sunrise” industry. Zydus aims to leverage its R&D and manufacturing scale to amplify Amplitude’s reach, particularly in emerging markets.

Regulatory and Operational Hurdles

The deal hinges on several critical conditions:
1. French Foreign Investment Approval: The French Minister of Economy must greenlight the transaction, a potential bottleneck given recent scrutiny of foreign takeovers in strategic sectors.
2. Management Commitment: CEO Olivier Jallabert’s reinvestment of proceeds and continued leadership are non-negotiable.
3. Employee Consultation: Amplitude’s works council has already approved the deal, reducing labor-related risks.

A mandatory tender offer for the remaining shares will follow, with Zydus targeting over 90% stake control by mid-2025. This would enable a “squeeze-out” to fully consolidate ownership.

Financial Implications and Risks

While the premium underscores Zydus’s optimism, the deal carries risks. A delay in regulatory approvals or a material adverse event (e.g., a product recall or supply chain disruption) could scuttle the timeline. Additionally, Amplitude’s recent 5% YoY sales growth (to €51.5M in H1 2024/25) may appear modest compared to peers, raising questions about its growth trajectory.

Conclusion: A High-Reward, High-Risk Gamble

Zydus’s acquisition of Amplitude Surgical is a calculated bet on MedTech’s future, backed by robust financial terms and strategic synergies. The 85.6% stake purchase, coupled with the potential to control 90%+ of the company, positions Zydus to dominate a niche market with high growth potential.

However, success hinges on navigating regulatory hurdles and sustaining Amplitude’s operational momentum. If Zydus can integrate Amplitude’s technologies with its global networks, the deal could yield significant returns. Investors should monitor €256.8M valuation vs. Amplitude’s €27.1M EBITDA (FY2024)—a 9.5x EBITDA multiple—to assess whether the premium is justified.

In a sector where innovation is king, this acquisition may prove pivotal for Zydus’s long-term growth, provided execution aligns with ambition. The coming months will test whether the deal’s strategic vision outweighs its risks.