Covidien to acquire Israel-based Oridion Systems for $300 million
05 April 2012
Covidien Plc, one of the world's largest makers of healthcare devices and disposables, today struck a deal to buy Israel-based respiratory monitoring devices maker Oridion Systems for about $300 million in cash, its second acquisition of an Israeli company in the past three weeks.
Late last month, Covidien, based in Dublin but run from Mansfield, Massachusetts, agreed to buy Tel Aviv-based respiratory systems maker superDimension Ltd, for about $300 million, in order to expand its offerings into the diagnostics and treatment of lung diseases. (See: Covidien to buy Israeli medical device maker superDimension for $300 mn)
Jerusalem-based Oridion Systems specialises in capnography, the non-invasive monitoring of a patient's ventilatory status, which is achieved by the continuous measurement and analysis of carbon dioxide in a patient's exhaled breath (etCO2).
The company develops Microstream capnography monitors and modules in conjunction with specialised algorithms, as well as etCO2 breath sampling lines. Together, these products monitor adequacy of ventilation and provide an early indication of any compromise in the airway of patients.
Oridion Systems had 2011 sales of $64 million, and as per the deal, a wholly owned subsidiary of Covidien will pay $23 per Oridion share.
''The acquisition of Oridion Systems adds a key monitoring technology to the Covidien portfolio,'' said Robert White, president, respiratory & monitoring systems at Covidien.
''Oridion's products and etCO2 technology are excellent complements to the company's current portfolio of pulse oximeters and monitoring products, enabling us to offer a complete portfolio of solutions to monitor respiratory function for patients around the world,'' he added.
Post closing, Oridion Systems will become a part of Covidien's oximetry and monitoring product line in the Medical Devices segment.
The companies expect the transaction to close in the second calendar quarter of 2012.
Covidien, the $11.6-billion healthcare products company, manufactures, distributes and services a diverse range of product lines in three segments - medical devices, pharmaceuticals and medical supplies.
Formerly Tyco Healthcare, Covidien is one of the world's largest producers of bulk acetaminophen, the largest supplier of opioid pain medications in the US, and is among the top 10 generic pharmaceuticals manufacturers in the US, based on prescriptions.