Bayer HealthCare has signed a merger agreement with Conceptus, a Mountain View, Calif.-based developer of the Essure procedure, a non-surgical permanent birth control method.

With this acquisition, Bayer will be able to offer a complete range of short-term, long-term and permanent contraceptive choices for women. Bayer will launch a public tender offer to acquire all shares in Conceptus. The transaction values Conceptus at approximately $1.1 billion representing $31.00 per share in cash. Closing is subject to customary conditions, in particular anti-trust approval in the U.S., and is expected by mid-year 2013.

"Bayer is committed to augmenting its organic growth with strategic bolt-on acquisitions. The acquisition of Conceptus represents an excellent fit for our HealthCare business—specifically in the United States, the world's most important health care market," said Dr. Marijn Dekkers, CEO of Bayer.

Andreas Fibig, member of the Bayer HealthCare executive committee and president of Bayer HealthCare Pharmaceuticals, added, “Both Bayer and Conceptus are focusing on innovative solutions to advance women's healthcare. Essure completes Bayer's portfolio of long-acting intrauterine systems and short-acting oral contraceptives. Our experience in the field of gynecology combined with our sales and distribution expertise will help to further develop Conceptus' business.”

Approved by the FDA in 2002, Essure is the only surgery-free and hormone-free permanent birth control method that can be performed in the comfort of a physician's office in less than 10 minutes without the risks associated with general anesthesia or tubal ligation. The Essure procedure is 99.8% effective based on five years of follow up with zero pregnancies reported in clinical trials, making it one of the most effective permanent birth control options available. Over 700,000 women worldwide have undergone the procedure.