Covidien has inked a definitive agreement to acquire gastrointestinal technology developer Given Imaging for approximately $860 million in cash.
The transaction will bring additional scale and scope to Covidien to serve the multibillion dollar global gastrointestinal market, and it supports the company's strategy to comprehensively address key global specialties and procedures, according to the vendor.
Given's flagship product is the PillCam, a swallowed optical endoscopy technology for the small bowel, esophagus, and colon. The company has a total of seven product lines across 21 gastrointestinal (GI) disease states, and it also offers GI functional diagnostic products such as ManoScan high-resolution manometry, Bravo capsule-based pH monitoring, Digitrapper pH-Z monitoring, and SmartPill motility monitoring systems.
The deal calls for Covidien to pay $30 per share in cash for all of the outstanding shares of Given Imaging, for a total of approximately $860 million in cash, net of cash and investments acquired. The transaction is subject to customary closing conditions, including Given shareholder approval and the receipt of certain regulatory approvals.
The companies expect to complete the deal by March 31, 2014. The boards of directors of both firms have approved the transaction, and the boards of Discount Investment (DIC), Elron Electronic Industries, and Rafael Development (RDC), which own 44% of Given's outstanding shares, have approved voting in favor of the acquisition.
