Endo Pharmaceuticals has agreed to buy American Medical Systems, a provider of devices and therapies for male and female pelvic health, for $30 per share, or about $2.9 billion in cash. Endo will also assume $312 million of AMS debt. Endo shares went up 5.7 percent in early trading, according to Bloomberg.
"This acquisition is a great step in achieving Endo's core strategy," Dave Holveck, president and CEO of Endo, says in a statement. "Through the acquisition of AMS, we will gain scale in devices and services, and will be positioned as a leading provider of healthcare solutions in the field of pelvic health, with a full spectrum of product offerings ranging from pharmaceuticals to medical devices."
The transaction is subject to approval by AMS stockholders and clearance by the relevant antitrust authorities. It is expected to close late Q3 2011. AMS CEO Anthony Bihl will be part of Endo management for at least a year and will continue to head that business, the companies confirmed in a conference call.
According to its website, AMS employs more than 1,200 people in nine countries.
As the New York Times points out, this deal is Endo's third in 12 months. Last May, the company announced it would buy HealthTronics for $223 million, and in September said it would acquire Qualitest for $1.2 billion.