Leveraging its IPO, Amplitude is out to make a mark in the medical world

Amplitude is stepping up its international growth and development, thanks to an IPO supported by Apax Partners The backstory to an IPO that turned a lot of heads … and hips.

 

 

An IPO had been in the works since 2011

“Amplitude went through three LBOs, the last of which was with Apax Partners in 2011. We were very clear that we wouldn’t do a fourth one and that the next step might be an IPO”, began Olivier Jallabert, CEO of Amplitude. After a four-year period during which the company grew internationally through a very active acquisition strategy, including 10 build-ups, the IPO finally took place in 2015. The objective was to move up a gear on the US and Japanese markets. “Our build-up strategy with Apax Partners over that four-year period gave us credibility on the market. It was time to do a public offering.”

The biggest French Medtech IPO ever

Olivier Jallabert says he worked almost daily with the Apax Partners team to prepare for the transaction.  “Apax Partners helped us in the debt negotiation with their expertise in financial engineering and played a crucial intermediary role in getting ready for the IPO, from choosing the arranging banks to putting together the business plan and the legal documentation.” As a result, the transaction was a success for Amplitude, which raised €106 million on Euronext Paris in June 2015, thereby obtaining a market value between €250 and €300 million. “Although we considered the Australian and US stock markets because of our growth in these two countries, it quickly became clear that Euronext was most logical and practical choice.” The transaction was the largest French IPO for a Medtech company ever.

Apax Partners still controls 41% of the capital

“With Apax Partners as a 41% shareholder, we can now achieve “flexicurity” by combining the strategic and operational vision of a fund with the resources of the financial markets.” Flexicurity is a concept dear to Amplitude, and the company intends to harness the resources necessary to turn its ambition into reality. It is already looking at new acquisitions, in particular in the Japanese market.

 

The view from Bertrand Pivin, partner at Apax Partners

“Amplitude has demonstrated its ability to maintain double-digit growth by capitalizing on the quality of its products and on its innovation, in particular in 3-D printing and robotics. The company has also replicated its successful French business model abroad, in particular in Brazil and Australia. In 2015, all the endogenous and exogenous factors fell into place, and so we supported the company in its IPO. Amplitude is now a leading company in the worldwide market for hip and knee prostheses and other orthopaedic technologies, offering a real alternative to the sector’s Big Four. We are very pleased that we can continue working together to support Amplitude as it continues to step up its development, both in France and internationally.”

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