By Lisa Kerner
Charlotte, N.C., May 8 - Covidien Ltd. announced on Friday that it agreed to acquire VNUS Medical Technologies, Inc. for $29 per share for a total of approximately $440 million, net of cash acquired.
The transaction, which will take the form of an all-cash tender offer followed by a second-step merger, is expected to be completed by June 30, according to a Covidien news release.
"The acquisition of VNUS will allow Covidien to expand its presence in the vascular market and is in line with our strategy of becoming a leading partner with vascular surgeons and interventional radiologists," Joe Almeida, Covidien president of medical devices, said in the release.
The VNUS product line will be an important addition to Covidien's portfolio of vascular intervention products, according to Almeida.
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.
| Acquirer: | Covidien Ltd.
|
| Target: | VNUS Medical Technologies, Inc.
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| Announcement date: | May 8
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| Transaction total: | $440 million
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| Price per share: | $29.00
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| Expected closing: | By June 30
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| Stock price of target: | Nasdaq: VNUS: $21.32 on May 7
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