Ireland's Covidien (NYSE: COV) announced that it will acquire all outstanding shares of Somanetics for $25 per share in cash, in a deal worth $250 million. The moved is part of Covidien strategy to develop globally. Somanetics, which has approximately 150 employees, is a developer of cerebral and somatic oximetry. The company had sales of $50 million in 2009.
"The acquisition of Somanetics will allow Covidien to broaden our product offerings and add another market-leading monitoring technology to its portfolio," said Pete Wehrly, President, Respiratory & Monitoring Solutions, Covidien. "The Somanetics product line, which we currently distribute in Europe, will expand our presence in the operating room. The acquisition will help us achieve our mission of enhancing the quality of life and improving patient outcomes."
Covidien has been on a buying spree, snagging more than a dozen small companies in the past three years. Earlier this month the devicemaker dropped $2.6 billion buy ev3, expanding its presence in the vascular market.