Revenio as an investment

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  1. What will Revenio look like in 5 years after the Visionix integration? What has concretely changed compared to before the acquisition?
  2. What are the single biggest risks that Revenio+Visionix margins will not rise to that ~30% EBITDA margin?
  3. In which of Visionix’s product lines do you see the strongest competitive advantage and pricing power? In which products is competition more price-driven?
  4. In which areas of the integration do you expect to see the first concrete benefits?
  5. What do you currently see as the key risks to the success of the Visionix integration?
  6. Are there businesses or product lines within Visionix that might not necessarily fit Revenio’s strategic focus in the long term?
  7. How do you see cultural differences affecting the integration on a practical level?
  8. How would you justify the deal’s value creation for shareholders? What are the key factors through which the value of the deal exceeds the price paid?

Feel free to use these, but no obligation.

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Excellent list of questions!

I would add that Visionix says it has been formed from many companies.
=> in what way is the Visionix entity integrated (management, administration, sales, R&D, operations, procurement, etc.)

It is interesting to understand whether the ‘promised’ €20 million synergies, of which 70% by the end of 2027, rely specifically on mutual synergies between Revenio and Visionix, or if there is still ‘squeezing’ to be done within Visionix itself.
It also affects the culture. Hands-off, or is seeking synergies ‘business as usual’.

In the illustration of the €20 million synergies, about 1/3 would come from sales, 2/3 from operations.

The price was challenging enough that
=> it’s worth grilling them on how solid the trail is regarding real synergies. Is it just a guess or is there a proper analysis behind it? Due Diligence can vary in depth.

The slides in the deal presentation looked uncomfortably familiar; these have been seen in other contexts, and slides are easily created but synergies are another matter.

Since the deal, Revenio’s market cap has given up about €75 million, so there is skepticism in the market regarding the purchase price.

Over the past 100 years, renowned companies like Weco, Briot, Visionix, Nextsight and Optovue have developed solutions for refraction, diagnosis, lens finishing and measurement, meeting the requirements of all eyecare professionals.

They have now joined forces to become a powerful global player in the eye care industry.

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When looking at who has the best OCT in terms of features—those with the pricing power—it seems to be a duel between Heidelberg and Zeiss. In specialized centers, clinicians want the devices with the best features. Zeiss and Heidelberg also hold the largest market shares in wealthy countries. Furthermore, they already possess a strong data moat. Clinicians are reluctant to switch systems because patient data would be lost.

Visionix’s Optovue is not a tier 1 device. It would be interesting to know Revenio’s strategy: 1) compete against the leaders, or 2) target Optovue more towards optician chains and small clinics by, for example, making the user interface exceptionally smooth or by competing on price. Personally, I would prefer to see option 2.

The medtech industry is full of examples of how technologies consolidate into duopolies or triopolies. OCT is a relatively young field, so development is still ongoing. However, due to the technical lead and data moat, it is difficult to break into the top tier anymore.

By the way, Heidelberg is part of the EssilorLuxottica mega-conglomerate, which includes Meta’s AI glasses in its portfolio… 37 P/E vs Revenio’s 25.

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