Baxter International and Synovis Life Technologies have reported a definitive agreement for Baxter to acquire Synovis, a provider of biological and mechanical products for soft tissue repair used in a variety of surgical procedures. The acquisition complements and will expand the portfolio of Baxter's regenerative medicine and biosurgery franchise, which includes a number of devices and biological products for hemostasis, tissue sealing and adherence.

The Synovis board of directors has unanimously approved the transaction and is recommending that its shareholders approve the agreement at an offer price of $28 per share which equates to $325 million of equity value or approximately $260 million after adjusting for the net cash.

"The medical device business that Synovis has built, and its technical capabilities to develop and manufacture surgical products, is highly complementary to Baxter's existing offering of BioSurgery products," said Ludwig Hantson, president of Baxter's BioScience business. "The combined business will offer surgeons in the United States and around the world a more complete line of innovative tools used to treat patients."

The transaction is expected to close in the first quarter of 2012, subject to approval by Synovis' shareholders, customary closing conditions and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.