Covidien plc (NYSE: COV) today announced that it has closed its acquisition of Given Imaging Ltd., providing the company additional scale and scope to serve a significant medical specialty, the multibillion dollar global gastrointestinal (GI) market.
Under terms of the merger agreement, Covidien has acquired all outstanding Given shares for $30 per share or an aggregate consideration of approximately $860 million, net of cash and short-term investments acquired.
“Acquiring Given Imaging significantly expands Covidien’s GI Solutions business and supports the company’s strategy to comprehensively address key global specialties and procedures,†said Bryan Hanson, group president, Medical Devices U.S., Covidien. “We are committed to providing clinicians with more accurate and efficient diagnostic technologies to help achieve better outcomes for patients.â€
With this acquisition, Covidien now has one of the broadest portfolios for visualizing, monitoring and detecting abnormalities in the digestive system. A key technology in the Given portfolio is the worldwide market leading product PillCam®, a minimally-invasive, swallowed optical endoscopy technology for the small bowel, esophagus and colon that does not require sedation of the patient.
Financial Highlights
Covidien will report the Given Imaging business within the Advanced Surgical revenue reporting line. Given Imaging is expected to add between $40 and $50 million per quarter in incremental revenue.