The transaction is also expected to increase Covidien’s research and development expenditures to fund the clinical development of CV Ingenuity technologies in the coming years.

Covidien vascular therapies president Stacy Enxing Seng said Covidien continues to focus on technologies that deliver improved patient care, both physician and hospital system customers.

"CV Ingenuity offers a robust DCB portfolio, and offering a DCB technology is something that we believe is necessary to continue to improve care for patients suffering from PAD, as well as ensuring we are a full line partner with our customers today and into the future," Seng added.

The increased expenditures are expected to be more than $20m in the second half of fiscal 2013 and more than $30m in 2014.

On completion of the transaction, which is expected to be completed in first quarter of 2013, CV Ingenuity business will be included the Covidien’s vascular product line in the medical devices segment.

US-based CV Ingenuity, focuses to improve patient outcomes to treat peripheral arterial disease by providing solutions to relieve vascular obstructions, inhibit restenosis and allow natural vessel healing.