A week after an Israeli publication reported that Covidien was in advanced negotiations with Minnesota pulmonary device maker superDimension, the Massachusetts-based healthcare company announced that it is buying superDimension for about $300 million.
The Minnesota company’s iLogic system diagnoses and treats lung cancer using electromagnetic navigation bronchoscopy.
“Covidien’s strategy is to invest in clinically and economically relevant products, and technologies which can meaningfully improve patient outcomes while reducing the overall cost of care,” saidBryan Hanson, president, Surgical Solutions,Covidien, in a news release. “The acquisition of superDimension will positionCovidiento continue its investment in meaningful innovation by delivering more comprehensive solutions in the evaluation and treatment of lung diseases.”
The transaction, which is expected to close in the second quarter, will bring superDimension, which was founded in Israel, under Covidien’sEndomechanical product line within its medical devices segment.
The acquisition comes three months after Covidien announced that it would divest its pharmaceuticals business to concentrate on its medical products business. Based on 2011 reported sales, the company’s management estimates that Covidien’s medical products business would have annual sales of $9.6 billion provided the spinoff is successful.
[Photo Credit: Arvind Balaraman]
By Arundhati Parmar
Arundhati Parmar is the Medical Devices Reporter at MedCity News. She has covered medical technology since 2008 and specialized in business journalism since 2001. Parmar has three degrees from three continents - a Bachelor of Arts in English from Jadavpur University, Kolkata, India; a Masters in English Literature from the University of Sydney, Australia and a Masters in Journalism from Northwestern University in Chicago. She has sworn never to enter a classroom again.More posts by Author
- Get Livefyre
- FAQ
