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Print Edition StoriesMonday, September 28, 2009
Covidien to buy Aspect Medical for $210M
By Mass High Tech staff
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Covidien plc has announced an agreement to buy Norwood-based brain-monitoring device company Aspect Medical Systems Inc. for about $210 million, the two companies reported today. Covidien noted associated restructuring charges but did not indicate the number of expected layoffs resulting from the merger.
Covidien is a medical device and pharmaceutical maker based in Dublin, with its U.S. headquarters in Mansfield. The company will acquire Aspect Medical in an all-cash tender offer and second-step merger that is expected to be completed by the end of 2009. As a result, Aspect will become part of the Oximetry and Monitoring product line in the Medical Devices segment
Covidien will benefit from the acquisition by adding Aspect’s brain monitoring technology, according to a released statement by Pete Wehrly, Covidien president of Respiratory & Monitoring Solutions. Covidien’s overall strategy is to expand in markets just outside of its existing business.
Aspect Medical (Nasdaq: ASPM) says its brain-monitoring system, called bispectral index technology, has been used to assess 29 million patients. A primary use of the technology is to monitor brain activity in patients undergoing general anesthesia or deep sedation, according to the firm.
Covidien (NYSE: COV) has sold several of its product lines recently, and officials said the company has sold its assets in order to “streamline its portfolio” and focus instead on higher-margin businesses.
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