Notable Mergers and Acquisitions of the Day 5/8: COV/VNUS

May 8, 2009 9:53 AM EDT

• 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.

To see all the Mergers & Acquisitions for today in real-time go to http://www.streetinsider.com/Mergers+and+Acquisitions

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