Coviden to acquire BARRX Medical for $325 million
BARRX Medical, a developer of minimally invasive medical devices, has signed a definitive agreement to be acquired by Covidien. Covidien is a global provider of healthcare products and a worldwide leader in advanced energy-based devices.
Covidien will acquire all of the outstanding capital stock of BARRX, a private company, for approximately $325 million, with additional future earn out payments possible upon achievement of company milestones. The transaction, subject to customary closing conditions, is expected to be completed by January 31, 2012.
"We are extremely pleased that Covidien has elected to acquire BARRX, as this will allow us to continue our growth and avail our endoscopic therapy to patients with Barrett's esophagus and esophageal squamous cell neoplasia on a worldwide basis," said Greg Barrett, president and CEO, BARRX Medical. "Covidien is a global leader in multiple disciplines of surgery and the acquisition of BARRX will allow them to leverage their expertise and resources in the growing field of endoscopy and gastrointestinal disorders."