Covidien to acquire Oridion Systems
Both company’s boards of directors have unanimously approved the transaction, pursuant to which a wholly owned subsidiary of Covidien will pay $23.00 in cash per Oridion share for a total of approximately $300 million, net of cash acquired. The transaction, structured as a merger, will be subject to the approval of Oridion's shareholders, customary closing conditions and receipt of certain regulatory approvals. The companies expect to complete the merger in the second calendar quarter of 2012.
Covidion will acquire Oridion’s Microstream capnography monitors and modules, in conjunction with specialized algorithms, as well as etCO2 breath sampling lines. Together, these products monitor adequacy of ventilation and provide an early indication of airway compromise to make patient care safer and easier.
"The acquisition of Oridion Systems adds a key monitoring technology to the Covidien portfolio," said Robert J. White, president of respiratory and monitoring systems, Covidien. "Oridion's products and etCO2 technology are excellent complements to [Covidien’s] current portfolio of pulse oximeters and monitoring products, enabling us to offer a complete portfolio of solutions to monitor respiratory function for patients around the world."
Covidien does not expect this transaction to have a material impact on its fiscal 2012 sales, operating margin or earnings per share.