St Jude Medical has agreed to acquire all of the outstanding shares of AGA Medical for $20.80 per share in a cash and stock transaction valued at $1.3bn, including the assumption of $225m in outstanding debt.

AGA Medical is a manufacturer of medical devices used to treat structural heart defects and vascular abnormalities through minimally invasive transcatheter treatments.

St Jude Medical said that the acquisition represents a significant addition to its cardiovascular and atrial fibrillation growth programs, adding to the company’s portfolio in four new markets – the market for left atrial appendage (LAA) closure, the market for patent foramen ovale (PFO) closure in cryptogenic stroke patients, the market to modify abnormal peripheral vessels with vascular plugs and the market to repair structural heart defects.

St Jude Medical chairman, president and CEO believes that the acquisition of AGA Medical will benefit customers, employees and shareholders of both companies.

AGA Medical president and CEO John Barr said that in St Jude Medical they have found a partner that shares their commitment to develop innovative products that support the vision, leadership and innovation of their co-founder Kurt Amplatz.

Following the completion of the transaction, AGA Medical will become part of St Jude Medical’s Cardiovascular Division.

Barr has agreed to join St Jude Medical, reporting to Cardiovascular Division president Frank Callaghan. St Jude Medical plans to continue operations from AGA Medical’s current location in Plymouth, Minnesota.

The transaction is expected to be conducted as an exchange offer followed by a merger and to close by the end of the year.