Information on the Target

Afinum has partnered with Angela Thyzel, founder of A.R.C. Laser GmbH, and Gil Shapira, founder of G.N.S. neoLaser Ltd., to create an integrated leader in medical laser technologies through significant investments. By acquiring a majority stake in this new entity, Afinum positions itself to leverage the expertise and innovation of both founders, who will also reinvest in the venture.

A.R.C. Laser, based in Nuremberg, Germany, has been a pioneering player in medical laser technology since its inception in 1996. The company specializes in advanced laser technologies specifically for ophthalmic treatments, particularly addressing glaucoma and cataract procedures. With a robust focus on research and development, A.R.C. Laser has expanded its product range to include applications in surgical fields such as Laryngology, Otology, Rhinology, in addition to veterinary medicine. Conversely, neoLaser, established in 2012 in Caesarea, Israel, has rapidly gained recognition for its innovative laser systems and fibers used in Endovenous Laser Ablation and Proctology applications, leading to improved patient care and treatment results.

Industry Overview

The global market for ophthalmologic and surgical lasers is experiencing robust growth, driven by key trends including an aging population and a rising incidence of diseases requiring surgical intervention. Such demographic and health dynamics create a significant demand for advanced laser technologies within the healthcare sector, paving the way for innovation and adoption across various medical practices.

Technological advances in laser treatments are further propelling this sector, enhancing the appeal of laser-assisted procedures for both practitioners and patients. With ongoing research and development initiatives, medical facilities are increasingly integrating laser solutions into their service offerings, thereby bolstering the overall market potential.

In Germany, the medical device industry is well-established, with the country being one of the leading players in Europe. Its strong healthcare infrastructure, characterized by high-quality medical services and rigorous regulatory standards, ensures that advancements in medical technology, including lasers, are adopted and implemented effectively. Similarly, Israel’s burgeoning MedTech sector, known for its innovation and entrepreneurial spirit, complements this partnership, offering opportunities for growth and collaboration.

The synergy between A.R.C. Laser and neoLaser positions the newly formed MedTech Laser Group strategically to capitalize on these market opportunities. By combining their expertise, the group aims to bring leading-edge medical solutions to a growing customer base across Europe and beyond.

The Rationale Behind the Deal

The formation of the MedTech Laser Group is primarily driven by the need to harness the collective strengths of A.R.C. Laser and neoLaser to capture the substantial market opportunities available in medical laser technology. By joining forces, the two companies can more effectively address the evolving demands of the healthcare sector and enhance patient care through innovative treatment options.

This partnership not only consolidates resources for research and development but also enhances their marketing and sales capabilities. The alignment of their growth strategies will facilitate international expansion and allow them to broaden their product portfolio, making strategic acquisitions as needed.

Information about the Investor

Afinum is a private equity firm focused on owning and developing medium-sized businesses in the German-speaking region of Europe. With a strong track record of successful investments, the firm emphasizes collaboration with management teams to drive business growth and operational excellence. Afinum’s strategic investments are characterized by a thorough understanding of industry dynamics, enabling it to identify and capitalize on emerging market opportunities.

The creation of the MedTech Laser Group as Afinum’s tenth platform investment through the Afinum 9 fund further exemplifies the firm’s commitment to the MedTech sector. As the second thematic investment within this domain, Afinum is well-positioned to leverage its expertise and established relationships to propel the growth of the newly formed entity.

View of Dealert

The investment by Afinum in the formation of the MedTech Laser Group appears to be a sound strategic move, given the growing demand for laser technologies in healthcare. The collaboration between A.R.C. Laser and neoLaser not only combines their technological capabilities but also enhances their market presence, which could lead to significant competitive advantages.

Moreover, the emphasis on research and development will allow the group to drive innovation, tackling the evolving needs of patients and practitioners alike. As the medical laser market is projected to grow significantly, Afinum is well-positioned to gain from this upward trend, securing potential profitability in the years to come.

Furthermore, the group's focus on international expansion and broadening the product portfolio through acquisitions suggests a proactive approach to capturing market share and addressing diverse customer needs. This adaptability in strategy increases the likelihood of sustained growth and success.

In conclusion, the formation of the MedTech Laser Group is a promising investment opportunity for Afinum, with the potential to create a robust platform that is poised for growth in the dynamic and expanding market for medical laser technologies.

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