Print“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, says Bryan Hanson, head of medical devices and U.S. operations for Covidien. ”
Covidien will acquire Given Imaging for $30 per share or approximately $860 million. The deal strengthens the Dublin-based company’s gastrointestinal product offerings and increases its global presence.
Israel-based Given Imaging has a broad technology platform for visualizing, diagnosing, and monitoring the digestive system, which includes its flagship product PillCam, a 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,” says Bryan Hanson, head of medical devices and U.S. operations for Covidien. The deal supports Covidien’s focus on less-invasive screening, diagnosis and treatment solutions that can improve patient outcomes and lower healthcare costs, says Hanson.
Given Imaging markets seven products across 21 GI categories. Its flagship product, the PillCam, is an optical endoscope that is used to see the small intestine, esophagus, and colon. It is swallowed, minimally invasive, and doesn’t require sedation.
Covidien says it will finance the deal with cash on hand and expects Given Imaging to add between $40 and $50 million per quarter in incremental revenue to its medical devices division.
Covidien offers a variety of products and services with a focus on patient monitoring and respiratory care devices. This is not Covidien’s first deal for an Israeli medical device maker. In 2012 it paid about $300 million for SuperDimension, a developer of minimally invasive interventional pulmonology devices, and about $346 million for Oridion Systems, a developer of respiratory and monitoring systems.
December 15, 2013
http://www.burrillreport.com/article-covidien_buys_given_imaging_for_860m.html
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