VNUS Medical acquired by Covidien; transaction valued at $440 million

By Lisa Kerner

Charlotte, N.C., June 17 - Covidien Ltd. announced it completed its acquisition of VNUS Medical Technologies, Inc. for approximately $440 million, net of cash and investments acquired.

In May, Covidien agreed to acquire VNUS for $29 per share.

According to Covidien, 13,998,147 shares, or approximately 86% of the outstanding VNUS shares, were validly tendered and not withdrawn in Covidien's offer, which ended at 9 a.m. ET on Wednesday.

An additional 955,552 shares, or approximately 6% of the outstanding VNUS shares, were tendered under notices of guaranteed delivery.

All the shares validly tendered were accepted for payment, Covidien said.

Covidien's subsidiary exercised its option to purchase newly issued shares from VNUS at the tender offer price, allowing Covidien to effect a short-form merger with and into VNUS.

"The acquisition of VNUS will expand our vascular product line and is consistent with our strategy of becoming a leading partner with interventional radiologists and vascular surgeons," Covidien president of medical devices Joe Almeida said in a company news release.

Covidien, a Hamilton, Bermuda, health-care products company, said it does not anticipate this transaction to have a material impact on its fiscal 2009 sales or operating margin outlook.

VNUS is a San Jose, Calif.-based medical device company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.