Medtronic Buys Digital Surgery, Boosts AI-Focus Surgical Care
Zacks Investment Research | Feb 16, 2020 08:24PM ET
Medtronic plc (NYSE:MDT) recently acquired privately-held Digital Surgery, in order to strengthen the company’s position in the growing field of surgical AI. London-based Digital Surgery, apart from working on surgical AI, also focuses on data and analytics, digital education and training. Financial terms of the deal have been kept under wraps.
Is the Deal a Strategic Fit?
Post the deal’s completion, Medtronic aims to pair Digital Surgery solutions with the company’s existing robotic platforms and instrumentation. Medtronic believes this upgradation will lead to the development of high-quality surgical care, in turn, enhancing patient admission.
Further, its advanced data and analytics solutions will help Medtronic progress in minimally-invasive surgery, in areas starting from education and training, clinical decision support, to even minimization of costs and unwarranted variability.
Digital Surgery’s businesses will be integrated within Medtronic’s Surgical Robotics business — a part of its Minimally Invasive Therapies Group.
While the acquisition is unlikely to impact Medtronic’s fiscal 2020 adjusted earnings per share, it is anticipated to meet the company’s long-term financial targets.
Medtronic in Robotic Assisted Surgery So Far
In a bid to grow in the field of robotics spine surgery, Medtronic had earlier acquired Mazor Robotics, an Israel-based robotic surgical guidance systems company. The buyout has combined Medtronic's market-leading spine implants, navigation and intra-operative imaging technology with Mazor’s robotic-assisted surgery (RAS) systems. On this, Medtronic recently launched the Mazor X Stealth Edition robotics guidance platform and has already received positive feedback for this capability.
The latest purchase of Digital Surgery will, undoubtedly, boost Medtronic’s surgical AI capabilities to a great extent.
Share Price Performance
Shares of Medtronic have gained 27.2% in the past year compared with the Zacks Investment Research
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