Covidien plc will acquire Oridion Systems Ltd., a medical device company based in Jerusalem, Israel.
Oridion also has an office in Needham, Mass., close to Covidien’s primary operations in Mansfield (though the firm is based in Ireland). The price is set at $346 million, with Covidien paying approximately $23 a share in cash. Both company’s boards have approved the deal, and the completion of the acquisition is now subject to Oridion shareholder approval.
Oridion specializes in capnography devices—non-invasive devices that monitor breathing status via the measurement of carbon dioxide content in exhaled breath. Covidien is a provider of a range of medical devices, and Oridion would add to its Respiratory and Monitoring Solutions division.
“This acquisition adds a key monitoring technology to the Covidien portfolio,” said Robert J. White, president of Respiratory & Monitoring Systems at Covidien.
Covidien does not expect the acquisition to affect is sales, operating margin or earnings per share in fiscal year 2012.
Covidien has been particularly acquisitive lately. In March, the company inked a deal for SuperDimension Ltd., a firm also based in Israel that makes novel pulmonary technology, for about $300 million.