Covidien to Acquire Maker of PillCam

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According to the Deal Book, the Jewish Voice, and a Covidien press release, Covidien will acquire all outstanding shares of Given Imaging Ltd. in a transaction valued at $860 million. Covidien has agreed to a purchase price of $30.00 per share, which is 127% of Given’s December 6, 2013 closing price.

The PillCam 3According to its website, Given is a Yoqneam, Israel-based company that develops technologies, such as the PillCam 3, for visualizing, detecting and monitoring gastrointestinal disorders. The PillCam 3 is described as a capsule used to “visualize and monitor small bowel abnormalities associated with Crohn’s disease, iron deficiency anemia (IDA) and obscure GI bleeding (OGIB).”

According to Covidien’s Group President, Medical Devices & U.S., Bryan Hanson:

We believe GI is one of the most attractive specialty procedure areas. Acquiring Given will enable Covidien to significantly expand its presence in a $3 billion GI market. . . . Adding Given’s portfolio of diagnostics to our portfolio accelerates Covidien’s strategy of providing physicians with products that support the patient along the care continuum from diagnosis to treatment. It also confirms our leadership in developing less-invasive screening, diagnosis and treatment solutions that can improve patient outcomes and lower healthcare costs.

The Jewish Voice reports that Given made the decision to seek a sale or merger after independent investor Discovery Group recommended that the company auction itself off due to the fact that the company “was chronically undervalued” as a result of “mismanagement.”

Given’s CEO, Nachum Shamir, is reported as providing the following comment on the transaction:

After thoroughly evaluating our strategic options we determined that this transaction is in the best interests of Given Imaging, its shareholders and employees. . . .

The deal is expected to close by March 31, 2014.



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