Covidien scoops up pulmonary devicemaker for $300M
Covidien ($COV) is on the acquisition trail again. This time, it has picked up Israel's superDimension, a maker of minimally invasive interventional pulmonology devices, for $300 million plus future performance-based payouts.
SuperDimension, which has annual sales of roughly $30 million, has developed the i·Logic system that allows for minimally invasive access to lesions deep in the lungs. Using GPS-like navigation, the system eases the evaluation of lung lesions, potentially enabling safer tissue biopsies.
In a statement, superDimension President and CEO Daniel Sullivan expressed excitement over the deal, adding it "will immediately strengthen our worldwide commercial infrastructure, expanding the benefits of the i·Logic System and Electromagnetic Navigation Bronchoscopy to a wider patient population."
The move also strengthens Covidien's position in devices for lung diseases and comes several months after it announced plans to spin off its pharmaceuticals business into a stand-alone public company. The completion of the spinoff is projected to take 18 months.
This isn't the first time the two companies have had dealings. Last fall, Covidien Ventures joined existing investors in helping superDimension raise $11 million in equity financing.
The sale is expected to close in the second quarter.
- here's the statement