Medtronic to acquire Covidien for $43B
Medtronic and Covidien have entered into a definitive agreement under which Medtronic has agreed to acquire Covidien in a cash-and-stock transaction valued at $42.9 billion.
The combined company will have 87,000 employees in more than 150 countries. The boards of directors of both companies unanimously approved the transaction.
Medtronic cited three strategies that the acquisition of Covidien will accelerate. One is therapy innovation as Covidien's portfolio of products will enhance Medtronic's existing portfolio, offering greater breadth across clinical areas, according to a release. The new organization will have improved globalization with a presence in more than 150 countries. Medtronic and Covidien have combined revenues of $13 billion from outside the U.S., of which $3.7 billion comes from emerging markets.
Third is economic value. With Covidien, Medtronic will be able to provide a broader array of complementary therapies and solutions that can be packaged to drive more value and efficiency in healthcare systems, according to the release. Both companies have longstanding relationships with healthcare system stakeholders.
Editor
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.