Covidien (COV) To Acquire VNUS Medical (VNUS) For $29/Share
Covidien (NYSE: COV) reached a definitive agreement to acquire VNUS Medical Technologies, Inc. (NASDAQ: VNUS) for $29 per share, or $440 million net of cash.
Shares of VNUS closed at $21.32 yesterday.
Assuming a second calendar quarter closing, Covidien expects this transaction to dilute fiscal 2009 GAAP earnings per share, primarily due to a one-time charge for in-process research and development (IPR&D). On a non-GAAP basis, excluding IPR&D, the transaction is expected to be slightly dilutive to 2009 earnings per share; however, the underlying strength of Covidien’s existing businesses is expected to offset this dilution. As a result, Covidien does not anticipate this transaction will have a material impact on its fiscal 2009 sales or operating margin outlook.
Shares of VNUS closed at $21.32 yesterday.
Assuming a second calendar quarter closing, Covidien expects this transaction to dilute fiscal 2009 GAAP earnings per share, primarily due to a one-time charge for in-process research and development (IPR&D). On a non-GAAP basis, excluding IPR&D, the transaction is expected to be slightly dilutive to 2009 earnings per share; however, the underlying strength of Covidien’s existing businesses is expected to offset this dilution. As a result, Covidien does not anticipate this transaction will have a material impact on its fiscal 2009 sales or operating margin outlook.
You May Also Be Interested In
- UPDATE: Angelo, Gordon to Acquire Benihana (BNHN) for $16.30/Share in Cash
- Covidien (COV) Prices $1.250 Billion Senior Notes Offering
- Patriot Coal (PCX) shares halted on breaker, bouncing as co. says entered into $625M financing
Create E-mail Alert Related Categories
Hot List, Mergers and AcquisitionsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
