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Medtronic announces acquisition of Covidien
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Medtronic Inc. and Covidien plc have entered into a definitive agreement under which Medtronic has agreed to acquire Covidien. The cash-and-stock transaction is valued at $93.22 per Covidien share, or a total of approximately $42.9 billion, based on Medtronic’s closing stock price of $60.70 per share on June 13.
After the completion of the transaction, Medtronic and Covidien will be combined under a new entity to be called Medtronic plc. The principal executive offices will be held in Ireland, where both companies have a longstanding presence, while its operational headquarters will continue to be held in Minneapolis and led by Omar Ishrak, chairman and chief executive officer of Medtronic.
“We are excited to reach this agreement with Covidien, which further advances our mission to alleviate pain, restore health and extend life for patients around the world,” Ishrak stated in a company press release. “This acquisition will allow Medtronic to reach more patients, in more ways and in more places. Our expertise and portfolio of services will allow us to serve our customers more efficiently and better address the demands of the current health care marketplace. We also look forward to welcoming the Covidien team to Medtronic and working together to improve health care outcomes globally.”