Covidien to Buy Power Medical Interventions Inc.

Covidien has reached an agreement to buy Power Medical Interventions Inc. (PMI), according to the firm with U.S. headquarters in Mansfield, Mass. The boards of directors of both companies unanimously approved the acquisition.

PMI’s first powered stapling platform, the SurgAssist, was introduced in 2001. Over the last two years, the company has introduced wireless Intelligent Surgical Instruments. Covidien develops technology for advanced surgical procedures and is focused on surgical stapling..

“By combining these technological assets with our global infrastructure, we will be delivering differentiated solutions to our customers,” said Scott Flora, president, Surgical Devices, Covidien. “As a pioneer in surgical stapling, we are committed to providing healthcare technology that enables advanced surgical techniques and improves patient outcomes.”

Michael Whitman, president and CEO of PMI. said, “We are excited to join Covidien¹s Surgical Devices business unit and look forward to establishing a technology platform that will advance surgical stapling and instrumentation beyond the capabilities of existing manually operated devices.”

Covidien does not anticipate this transaction will have an impact on its fiscal 2009 sales or operating margin outlook.