Covidien acquires Israeli medical tech company for $860 million
GIVEN IMAGING LTD.'S PillCam is a minimally invasive, swallowed optical endoscopy technology designed to help health care practitioners visualize a patient's small intestine. Covidien PLC has acquired Given Imaging for $860 million, to expand the company's GI Solutions business.
MANSFIELD – Global biotech firm Covidien PLC has acquired Israeli medical tech company Given Imaging Ltd. for $860 million, a move that will allow Covidien to expand into the multibillion dollar gastrointestinal product market.
Given Imaging’s PillCam is a minimally invasive, swallowed optical endoscopy technology designed for direct visualization of the small intestine to detect and monitor abnormalities in the digestive system. This procedure – which with the PillCam technology does not require sedation of the patient – helps health care practitioners detect the presence of lesions, obscure GI bleeding, Crohn’s disease and iron deficiency anemia.
Under terms of the merger, Covidien has acquired all outstanding Given Imaging shares for $30 per share or approximately $860 million total.
“Acquiring Given Imaging significantly expands Covidien’s GI Solutions business and supports the company’s strategy to comprehensively address key global specialties and procedures,” said Bryan Hanson, president of medical devices and U.S. president of Covidien, which is based in Dublin, Ireland. “We are committed to providing clinicians with more accurate and efficient diagnostic technologies to help achieve better outcomes for patients.”
The acquisition is expected to add between $40 and $50 million in quarterly revenue for Covidien. With 2013 revenue of $10.2 billion, Covidien has more than 38,000 employees worldwide in more than 70 countries, and its products are sold in over 150 countries.
Peter Lucht, vice president of external communications for Covidien, said decisions have not yet been made about whether all 12 of Given Imaging’s global offices in Israel, North America, Europe, Asia and Australia will remain in operation, or whether any staffing changes will be made.