Covidien and ev3 have signed a definitive merger agreement under which Covidien will acquire all of the outstanding shares of ev3 for $22.50 per share in cash, for a total of $2.6bn, net of cash acquired.
The transaction further accelerates Covidien’s strategy of building vascular platform addressing high-growth markets and positions Covidien to become a endovascular player, with strong positions in both the peripheral vascular and neurovascular markets.
Richard Meelia, chairman, president and CEO of Covidien, said: “The acquisition of ev3 will enable Covidien to significantly expand its presence in the vascular market and is in line with our strategy of becoming a leading partner with vascular surgeons, neurosurgeons, interventional cardiologists and interventional radiologists.
“With its broad product portfolio, clinical expertise and call-point synergies with our existing vascular franchise, ev3 will be an important addition to our innovative vascular intervention products.”
Robert Palmisano, president and CEO of ev3, said: “We believe this transaction will provide truly unique opportunities and will create value for both companies’ stockholders, patients and employees. We will be able to advance our broad platform of peripheral vascular and neurovascular technologies with a leading global healthcare products company that shares our vision of delivering breakthrough and innovative medical solutions for improved patient outcomes.
“In addition, this combination will provide the opportunity for further innovation to support endovascular market growth and procedure penetration worldwide, while our employees will be afforded the opportunity to be part of a larger organization with greater depth of resources for sustained success in our industry.”
ev3 develops technologies and solutions for the treatment of peripheral vascular and neurovascular diseases. ev3 offers a portfolio of treatment options, including the primary interventional technologies used include peripheral angioplasty balloons, stents, plaque excision systems, embolic protection devices, liquid embolics, embolization coils, flow diversion, thrombectomy catheters and occlusion balloons.