Covidien to buy Aspect Medical for about $210 mln
Medical products maker Covidien said it agreed to buy Aspect Medical Systems Inc in a deal valued at about $210 million to boost its product offerings and add Aspect's brain monitoring technology to its portfolio.
Covidien will pay $12 for each share of Aspect, a premium of about 56 percent to the stock's Friday close of $7.67.
Covidien, which sees the deal closing by the end of this year, said it expects the acquisition to dilute its fiscal 2010 earnings per share, primarily due to a one-time charge for restructuring.
Excluding the charge, the deal is expected to be slightly dilutive to 2010 earnings per share and will not have a material impact on its fiscal 2010 sales or operating margin outlook, the company added.
Shares of Covidien closed at $41.36 Friday on the New York Stock Exchange. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Deepak Kannan)
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