Covidien and Given Imaging yesterday announced a definitive agreement under which Covidien will acquire all of the outstanding shares of Given Imaging for a total of approximately $860 million, net of cash and investments acquired.
Since pioneering the field of capsule endoscopy in 2001, Given Imaging has become a world leader in gastrointestinal (GI) medical devices, offering health care providers a range of innovative options for visualizing, diagnosing and monitoring the digestive system. Headquartered in Israel, Given Imaging provides one of the broadest technology platforms for visualising, diagnosing and monitoring the digestive system, including its flagship PillCam®, an innovative swallowed capsule endoscope.
“We believe GI is one of the most attractive specialty procedure areas. Acquiring Given will enable Covidien to significantly expand its presence in a $3 billion GI market,” said Bryan Hanson, Group President, Medical Devices & U.S., Covidien. “Adding Given’s portfolio of diagnostics to our portfolio accelerates Covidien’s strategy of providing physicians with products that support the patient along the care continuum from diagnosis to treatment. It also confirms our leadership in developing less-invasive screening, diagnosis and treatment solutions that can improve patient outcomes and lower healthcare costs.”
“Given Imaging revolutionised GI diagnostics over 12 years ago with the launch of PillCam and created an entirely new diagnostic category — capsule endoscopy. The combination of Covidien’s established global presence and Given Imaging’s innovative capabilities has the potential to transform this market,” said Homi Shamir, President and CEO, Given Imaging Ltd. “After thoroughly evaluating our strategic options we determined that this transaction is in the best interests of Given Imaging, its shareholders and employees and provides unique benefits to patients globally.”
With its headquarters in Dublin, Ireland, this is not Covidien’s first Israeli acquisition having last year acquired respiratory monitor developer Oridion, bronchial tubes endoscope maker superDimension, and hernia mesh company PolyTouch.
The transaction is subject to customary closing conditions, including Given Imaging shareholder approval and the receipt of certain regulatory approvals, and is expected to be completed by 31 March 2014.
