Covidien buys Given Imaging for $860mDec. 9, 2013
Irish healthcare company Covidien plc has acquired IDB Holding Corp. unit, capsule endoscope developer Given Imaging, for $860 million, net of cash and investments acquired. Covidien is paying $30 per share, a 15% premium on the share's closing price on Nasdaq on Friday night when the company had a market cap of $753 million.
IDB subsidiary Discount Investment Corporation owns 14.7% of Given Imaging, subsidiary Elron Electronic Industries, owns 21.2%, including 8.3% through RDC, its joint venture with Rafael Advanced Defense Systems Ltd. in equal shares. Discount Investment said that it would make $142 million on the sale, Elron said that it would make $204 million, and RDC will make $80 million.
Given Imaging president and CEO Homi Shamir said, “Given Imaging revolutionized GI diagnostics over 12 years ago with the launch of PillCam and created an entirely new diagnostic category - capsule endoscopy... 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.”
Covidien has previously acquired three Israeli medical device companies, all of them in 2012 - respiratory monitor developer Oridion for $346 million, bronchial tubes endoscope maker superDimension for $300 million, and hernia mesh company PolyTouch for $40 million.
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