A huge shakeup in the medical device field as Ireland’s Covidien acquires Israeli camera-in-a-pill maker Given Imaging for a reported $860 million. The companies announced today (December 8, 2013) a definitive agreement under which Covidien will acquire all of the outstanding shares of Given Imaging for $30.00 per share in cash.
Given Imaging is world renowned for its non-invasive technology that detects disorders in the gastrointestinal (GI) tract. Known as PillCam, the camera-in-a-pill device is ingested by patients and allows physicians to visualize the esophagus, colon, and areas of the small intestine. The PillCam is seen as the alternative answer to traditional colonoscopies.
“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,” said Bryan Hanson, Group President, Medical Devices & US, Covidien. “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.”
“Given Imaging revolutionized GI diagnostics over 12 years ago with the launch of PillCam and created an entirely new diagnostic category — capsule endoscopy. The combination of Covidien’s established global presence and Given Imaging’s innovative capabilities has the potential to transform this market,” said Homi Shamir, President and CEO, Given Imaging. “After thoroughly evaluating our strategic options we determined that this transaction is in the best interests of Given Imaging, its shareholders and employees and provides unique benefits to patients globally.”
IDB subsidiary Discount Investment Corporation sent a notice to the TASE saying it had agreed to sell Given Imaging.
The transaction is expected to be completed by March 31.