The Gores Group/Technology4Medicine Acquire Slovenia-Based Medical Laser Firm
Espicom View: The Slovenian medical device market is expected to increase by a compound annual growth rate ( CAGR ) of 2.8% in US dollar terms and 5.1% in local currency terms between 2013 and 2018. This will take the market to US$360.7mn in 2018. We forecast strongest growth in dental products, with a 2013-2018 CAGR of 6.8%, followed by orthopaedic and prosthetic products , with a 2013-2018 CAGR of 5.1% .
Private equity firm The Gores Group and Technology4Medicine, a provider of dental lasers, have acquired Fotona, a Ljubljana, Slovenia-based manufacturer of high performance lasers for medical, dental, aesthetic and gynaecological applications. The Gores Group invested through its small capitalisation partners investment fund.
Fotona will be merged into Technology4Medicine, and Jefferey W Jones, President of Technology4Medicine, will assume the role of CEO of the combined business. According to Jones, with the formation of the partnership between Fotona, Technology4Medicine and The Gores Group, Fotona will be stronger and have more resources to access the global market.
Fotona's advanced laser technologies are intended to make treatments in areas such as aesthetics and dermatology, dentistry, surgery and gynaecology faster, less invasive and more effective. Patented solutions in pulse technology, energy feedback control and optical solutions for producing an almost perfectly homogeneous beam profile are said to be highly appreciated by doctors and patients.
Fotona develops and manufactures all of its laser systems in Ljubljana, and its products are available to dental and medical professionals through a worldwide network of distributors.
Slovenia Dental Products Market Forecast
The market for dental products in Slovenia was estimated at US$27.4mn in 2013, or 8.7% of the country's total medical devices market, making it the smallest sector of the market. Around 83% of the market is imported. The leading supplier in 2013 was Germany, accounting for 40.4% of dental imports. The market has increased by a CAGR of 7.0% between 2008 and 2013 and is projected to grow by a CAGR of 6.8% over the forecast period, making it the fastest growing sector of the market. In 2018, the market will reach US$38.0mn.
The market for capital equipment (drills, chairs and X-rays) was estimated at US$2.5mn in 2013. Meanwhile, the market for dental instruments and supplies was estimated at US$24.9mn for the year.