Covidien Plc, a maker of health-care products for clinical and home settings, agreed to buy Oridion Systems Ltd., 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.