Covidien Plc (NYSE:COV) is acquiring superDimension Ltd., an Israel-based maker of medical devices to treat distal lung disease, for around $300 million plus future earn out payments.
Headquartered in Minneapolis, Minnesota, superDimension is a developer of minimally-invasive pulmonology devices that enable the diagnosis and potentially the treatment of distal lung disease.
Ireland-based Covidien, a healthcare products company, expects the deal to be slightly dilutive earnings per share in fiscal 2012.
Johnson & Johnson (NYSE: JNJ) and Medtronic Inc. (NYSE: MDT) were among companies that were in the race to acquire superDimension, Israel's financial daily Calcalist reported last week, without quoting sources.
superDimension holds fourteen granted U.S. patents, according to the company Web site. superDimension obtained its CE Mark in 2002 and has 510(k) clearance from the U.S. Food and Drug Administration.
It employs more than 100 staff.
The i·Logic System, superDimension's product line, addresses a total available market of more than 8 million patients in the United States alone. The system generated annual sales of around $30 million.
According to superDimension, the i·Logic System uses electromagnetic navigation bronchoscopy to diagnose benign and malignant lung lesions, avoiding the need for higher-risk procedures.
Super Dimension has reportedly raised around $120 million till now.
The deal is expected to close in the second calendar quarter of 2012.
Shares of COV closed Friday's regular trading at $53.92 on the NYSE.