Covidien and Given Imaging

Given Imaging's PillCam SB 3 capsule--Courtesy of Given

The deal: Covidien scoops up Given Imaging
The price tag: $860 million

Why it matters: The Irish medical device giant ($COV) gets to add some significant innovation to its product line with Given ($GIVN), the Israeli maker of PillCam, a tiny, ingestible camera that gives GI doctors endoscopic images of the esophagus, small bowel and colon as it passes through and exits a patient's digestive system. Such an acquisition, announced in December, makes sense for Covidien, which spun off its drug arm earlier in 2013 and needed to turn to new revenue sources for growth. The deal, which closed Feb. 27, also satisfies a push from Discovery Group, an activist Given shareholder that wanted it to explore a sale, citing missed opportunities for PillCam. Given had explored selling itself in 2012 but then backed out of that process in January 2013. Covidien's acquisition of Given closed this month and amounts to $30 per share in cash. At the time, Covidien said it saw GI as one of the most attractive specialty procedure areas, and that Given Imaging would help Covidien expand its presence in a market already worth $3 billion. Covidien also gets SmartPill, an ingestible device that measures pressure, pH and temperature as it travels through the gastrointestinal tract, which Given snatched up in 2012.

For more:
Covidien is acquiring Given Imaging, maker of the 'PillCam' oral endoscope, for $860M
Given Imaging's CEO contemplates his future as Covidien's $860M buy nears its close
Covidien closes its $860M Given Imaging buyout

Covidien and Given Imaging
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