Interventional technology firm Medtronic of Minneapolis has inked a deal to buy spinal therapy developer Kyphon of Sunnyvale, CA, for $3.9 billion.
Medtronic has agreed to pay $71 a share in cash for all outstanding Kyphon shares, a 32% premium over the company's closing share price on July 26. The deal is expected to close in the first quarter of 2008.
The companies said their product lines and geographic coverage are complementary. Both companies focus on minimally invasive treatments: Medtronic's focus is on spinal surgery for younger patients with scoliosis and degenerative disk disease in the cervical and lumbar spine, while Kyphon's focus has been on treating older patients with vertebral compression fractures and spinal stenosis.
The two firms have been involved in patent litigation, which would be resolved with the completion of the deal.
By AuntMinnie.com staff writers
July 27, 2007
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