Covidien to Acquire Oridion Systems for $346 Million

Covidien Plc (COV), a maker of health-care products for clinical and home settings, agreed to buy Oridion Systems Ltd. (ORIDN), an Israeli medical-device maker, for $346 million.

Covidien will pay about 21.04 Swiss francs ($23) a Oridion share, 75 percent higher than yesterday’s closing stock price. The merger is expected to be completed in the second quarter, according to a statement.

The acquisition of Jerusalem-based Oridion, a maker of devices for patient breathing safety, is intended to add to Covidien’s portfolio of devices to monitor “respiratory function for patients around the world,” Robert J. White, president of Respiratory & Monitoring Systems at Covidien, said in the statement. Oridion had $64.5 million of revenue in 2011.

Covidien doesn’t expect the transaction to have a material effect on its fiscal 2012 sales, operating margin or earnings per share, the Dublin-based company said in the statement. The boards of both companies have approved the deal, which is is subject to Oridion shareholders’ approval, Covidien and Oridion said.

To contact the reporter on this story: David Wainer in Tel Aviv at

To contact the editor responsible for this story: Phil Serafino at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.