Device Technologies

Overview

Device Technologies is the leading independent medical technology provider for practitioners and major hospital groups in Australia, New Zealand, and Southeast Asia. The business has a diversified product offering spanning 32 medical specialties, 200+ brands, and 30,000+ differentiated medical device products.

When Navis invested in Device Technologies in 2019, its strategy was to use the company’s superior sales and distribution platform to grow share through new agencies and M&A and to expand into Southeast Asia.

Investment Rationale

  • Attractive ANZ Market: The resilient ANZ healthcare market is well-funded, supported by long-term demographic growth, and readily adopts innovative medical technologies
  • Leading independent player: DT’s growth is underpinned by its scale, deep relationships, and leading capabilities within the complex healthcare sector;
  • Robust business model: Stable and recurring revenues, consistently high gross profit margins, and high free cash flow generation
  • Multiple domestic growth avenues: Broad range of organic and M&A growth opportunities across existing and new therapeutic areas
  • Southeast Asia opportunity: Expansion into Southeast Asia’s fast-growing medical device market using DT’s best-in-class medical distribution capabilities and existing agency relationships

KEY FACTS

SECTOR
Healthcare

HEADQUARTERS
Australia

INVESTMENT DATE
January 2019

NAVIS OWNERSHIP
Majority

Navis Value Impact

  • Strategic Acquisitions: Assisted with the execution of domestic bolt-ons which provide synergistic growth into new therapeutic areas, IP ownership, and access to adjacent customer segments
  • Southeast Asia Growth: Navis’s regional capabilities accelerated market entry. This included investment teams, operations teams, and senior advisor support.
  • Operational Value Add: Drove efficiencies in the fixed cost base, upgraded ERP/CRM, expanded digital capabilities, and streamlined the supply chain

Looking ahead

Device Technologies has a robust M&A pipeline for further growth, and it has built a scale business in Southeast Asia, offering a platform for growth for new agencies and acquisitions.