logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Covidien (COV) Paying $680 Million for Camera-in-a-Pill Maker Given Imaging (GIVN)

By  +Follow December 9, 2013 7:38AM
Share:
Tickers Mentioned:

Medical device manufacturer Covidien plc (COV) said Sunday that it is buying medical technology company Given Imaging Ltd. (GIVN) in a transaction valued at $860 million to expand its gastrointestinal diagnostic business. The news came after three units of Nochi Dankner’s IDB group agreed Saturday to sell their positions in Given Imaging, although the name of the buyer was not disclosed.

Covidien, which is headquartered in Dublin, Ireland, said it will pay $30 per share for Israel-based Given, representing about a 27-percent premium to Friday’s closing price of $23.65 per share of GIVN. The boards of both companies have approved the acquisition, which is expected to close by the end of March 2014.

Capsule Endoscopy

Given Imaging is a pioneer in capsule endoscopy. The company has developed PillCam, an ingestible capsule containing a tiny camera that when swallowed allows clinicians to look inside, and monitor and diagnose the digestive system as an alternative to a traditional endoscopy. Given has been under pressure for nearly two years to sell itself, including investor Discovery Group urging the company in October to initiate a $50 million share buy-back plan and put itself on the auction block again, saying it is chronically undervalued because of poor management. At that time, Discovery Group, which owns about 4 percent of Given Imaging, thought the company could get an offer of up to $30 per share. Looks like it was right.

Covidien said that it will use cash on hand to fund the purchase. Given Imaging will report within the medical devices segment of Covidien and is expected to add between $40 million to $50 million per quarter in incremental revenue to the division. From profit and operating margin standpoints, the acquisition is not expected to be accretive until fiscal 2015.

A Strong Q3 for Given Imaging

During the third quarter ended September 30, Given Imaging generated $50 million in sales, up 10 percent from the year prior quarter. Adjusted earnings were $8.2 million, or 25 cents per share, up 4 percent from Q3 2012. Global PillCam sales increased 9 percent during the quarter to 63,500 capsules. Worldwide sales of GI diagnostics products improved by 15 percent to $15.3 million. By integrating the Given Imaging operations, Covidien will be able to leverage its global reach to further bolster sales of Given’s products.

“We believe GI is one of the most attractive specialty procedure areas. Acquiring Given will enable Covidien to significantly expand its presence in a $3 billion GI market,” said Bryan Hanson, Group President, Medical Devices & U.S., Covidien, in a statement today.

“After thoroughly evaluating our strategic options we determined that this transaction is in the best interests of Given Imaging, its shareholders and employees and provides unique benefits to patients globally,” added Homi Shamir, president and chief executive at Given Imaging Ltd.

Shares of GIVN jumped ahead to near the buyout price at the opening bell. Through Friday’s close, the stock price was up about 33 percent in 2013. Shares of COV, which were up 28 percent in 2013 through Friday, have inched up about half a percent in Monday morning action to $68.48.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for COV
medtech[y]
24 Oct 14 13:54:19
Several great discussions on the Covidien Surgical Solutions board, including one on HET |http://t.co/kPB12duT01 @Covidien $COV $MDT
NASDAQ
24 Oct 14 13:49:48
$COV - Filing of Certain Prospectuses and Communications in Connection With Business Combination Transactions http://t.co/gkC0OmmCm3
4-traders.com
24 Oct 14 13:20:10
Covidien Files 8K - Material Impairments http://t.co/yCjMz49xV3 $COV $APR $8872 $S3439 $CFSU $SFRK $MLMAD $MAIL
NASDAQ
24 Oct 14 13:04:41
$COV - Current Report Filing (8-k) http://t.co/YzINZsvxby
Instrumental Data
24 Oct 14 13:02:57
COVIDIEN PLC $COV 8-K now available
Tri B growthinvestor
24 Oct 14 10:56:33
$COV sold COV 141122 P 80.00 for a small loss before expiration. Let's see if this will decline in the coming weeks.
Stock Relay
24 Oct 14 10:22:29
$SFXE Tick Click Here: http://t.co/Y4zAaA9Vsb Also See: $BANCP $PNK $COV $HTCO ~
NASDAQ
24 Oct 14 10:07:04
$COV - Filing of Certain Prospectuses and Communications in Connection With Business Combination Transactions http://t.co/uz4rfO6eyS
ModernGraham
24 Oct 14 08:03:07
Covidien plc Quarterly Stock Valuation - October 2014 $COV - #investing http://t.co/rW1F9SXEYl
MedTechWorld
24 Oct 14 06:15:31
The Scariest #MedDevice Recalls of 2014 http://t.co/98zGrD92ID #medtech $THOR $GE $COV http://t.co/A6byXoJQdh
Qmed
24 Oct 14 06:05:30
The Scariest #MedDevice Recalls of 2014 http://t.co/VP4LO5DMcS #medtech $THOR $GE $COV http://t.co/GlXB1eST4y
HotKeyTrading
24 Oct 14 06:00:04
Popular Stock Picks By Consensus: $COV $NKE $BBBY $MRK $GILD $BIDU $BRCD $NLY $ATVI $T $SYMC $AXP $MET $EMC $CMCSA http://t.co/Vv2VEn80mr
medtech[y]
24 Oct 14 04:56:08
Several great discussions on the Covidien Surgical Solutions board, including one on HET |http://t.co/IJNQqiJP8s @Covidien $COV $MDT
DR JAMES CABOT
24 Oct 14 02:55:15
RT @SeekingAlpha: Cramer's Lightning Round - Facebook Is Worrisome (10/23/14) http://t.co/cN8yc0Go5w $COV $UAN $EW $FB $BGS
garabato
24 Oct 14 02:52:47
RT @SeekingAlpha: Cramer's Lightning Round - Facebook Is Worrisome (10/23/14) http://t.co/cN8yc0Go5w $COV $UAN $EW $FB $BGS
Quantpost Technology
24 Oct 14 02:52:07
$FB News: "Cramer's Lightning Round - Facebook Is Worrisome (10/23/14) $COV …" http://t.co/LFv3UjaRNv Board view: https://t.co/nxY9kSLLpZ
Seeking Alpha
24 Oct 14 02:52:07
Cramer's Lightning Round - Facebook Is Worrisome (10/23/14) http://t.co/cN8yc0Go5w $COV $UAN $EW $FB $BGS
Russell Barbour
23 Oct 14 17:38:29
Big Trader In The News - Shocking! Video testimonials! http://t.co/tyZMYc7FFv $WLB $COV $CDNS $NUAN $RUSL $BIIB $ATHN
Contract Laboratory
23 Oct 14 15:17:26
RT @foodanddruglaw: RT @MedTechWorld "The Scariest #MedDevice Recalls of 2014   #medtech $THOR $GE $COV http://t.co/MlTijpKFKd" http://t.co…
FDLI
23 Oct 14 15:05:05
RT @MedTechWorld "The Scariest #MedDevice Recalls of 2014   #medtech $THOR $GE $COV http://t.co/MlTijpKFKd" http://t.co/bXnb7eXNT2
Apple Rubber
23 Oct 14 12:06:38
RT @QmedNews: The Scariest #MedDevice Recalls of 2014 http://t.co/7GRo3mZL90 #medtech $THOR $GE $COV http://t.co/M1U7TUO5qR
Qmed
23 Oct 14 12:02:39
The Scariest #MedDevice Recalls of 2014 http://t.co/7GRo3mZL90 #medtech $THOR $GE $COV http://t.co/M1U7TUO5qR
Russell Barbour
23 Oct 14 11:48:06
Big Trader In The News - Shocking! Video testimonials! http://t.co/tyZMYc7FFv $WLB $COV $CDNS $NUAN $RUSL $BIIB $ATHN
Daily Contracts
23 Oct 14 10:41:01
Real-Time feed of company contracts, original agreements and executive updates from Covidien Plc. $COV http://t.co/1FnnV2XjIT
Chris Newmarker
23 Oct 14 09:28:17
RT @QmedNews: The Scariest #MedDevice Recalls of 2014 http://t.co/A7LkRBM3mv #medtech $THOR $GE $COV http://t.co/NfV5n1sH5O
MedTechWorld
23 Oct 14 09:02:59
The Scariest #MedDevice Recalls of 2014 http://t.co/Gzk3JZy6qx #medtech $THOR $GE $COV http://t.co/b5rx5DJDsH
Projectus Consulting
23 Oct 14 08:56:12
RT @QmedNews: The Scariest #MedDevice Recalls of 2014 http://t.co/A7LkRBM3mv #medtech $THOR $GE $COV http://t.co/NfV5n1sH5O
Qmed
23 Oct 14 08:52:12
The Scariest #MedDevice Recalls of 2014 http://t.co/A7LkRBM3mv #medtech $THOR $GE $COV http://t.co/NfV5n1sH5O
MedTechWorld
23 Oct 14 08:52:12
The Scariest #MedDevice Recalls of 2014 http://t.co/hC6NN9bXHa #medtech $THOR $GE $COV http://t.co/WiEZmiCTdG
Media Sentiment
23 Oct 14 07:24:55
$COV received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 404
Market Int Center
23 Oct 14 07:20:31
Covidien $COV Showing Bearish Technicals With Support At $85.78 ( http://t.co/Vt77xeX4u0 )
EP Vantage
23 Oct 14 07:16:54
ICYMI: There's more to Ireland than tax loopholes, #medtech body insists: $MDT $COV http://t.co/7aLWyreE7R #interview
WKRB News
23 Oct 14 05:14:40
Covidien plc Given Buy Rating at Deutsche Bank $COV http://t.co/d5SgN3QTqh
Stock Relay
23 Oct 14 05:05:11
wininstocks2014: Stock Charts: COV 87.41 Stock Charts $COV Covidien PLC (NYSE) http://t.co/1gMtnzcDTT
4-traders.com
23 Oct 14 04:35:27
Covidien : Joins Forces with the American Lung Association to Help Women Understand Their Increased Risk of... http://t.co/vdysQO1qb9 $COV
NASDAQ
23 Oct 14 04:31:42
$COV - Covidien Joins Forces with the American Lung Association to Help Women Understand Their Increased Risk http://t.co/ZiSsBiMbnt
BV Healthcare
23 Oct 14 04:31:06
$COV Covidien Joins Forces with the American Lung Association to Help Women Understand Their Increased.. http://t.co/qt6Bldyaz7
Russell Barbour
22 Oct 14 23:54:39
Big Trader In The News - Shocking! Video testimonials! http://t.co/tyZMYc7FFv $WLB $COV $CDNS $NUAN $RUSL $BIIB $ATHN
John Ablemann
22 Oct 14 12:30:39
$COV 3 Stocks Catch Wall Street's Eye: Covidien plc (NYSE:COV), United States Steel ... http://t.co/x5RFiA8qHK
Thomas Collins
22 Oct 14 12:30:39
$COV Covidien Rises As Medtronic Maintains Merger-Specific Language In Its Filing http://t.co/DKJzHHW2lZ
HotKeyTrading
22 Oct 14 11:00:04
Unusual Options Activity: Calls: $ALTR $NCR $MET $GNW $YHOO $COP $BIDU $DSX $MDLZ $NPSP $WU $COV $APOL $BWA $FLEX http://t.co/XQITF0lRKD
NASDAQ
22 Oct 14 09:19:03
$COV - Filing of Certain Prospectuses and Communications in Connection With Business Combination Transactions http://t.co/3xWbQVlx5f
Nick Wroblewski
22 Oct 14 08:39:58
RT @OphirGottlieb: 10-22-14: Daily Covered Call Report $BTU $COV $WFT $AAL and more: http://t.co/aV3PFDm6mX
Ophir Gottlieb
22 Oct 14 08:39:32
10-22-14: Daily Covered Call Report $BTU $COV $WFT $AAL and more: http://t.co/aV3PFDm6mX
Sleek Money
22 Oct 14 08:07:46
Covidien plc’s Buy Rating Reiterated at Deutsche Bank $COV http://t.co/MKCqg3X6Mh
Darnell Lockett
22 Oct 14 07:43:26
RT @davidfaber: Covidien makes clear it is not going to be like Shire: http://t.co/MIUopPxnst $COV
Ryan Hunter
22 Oct 14 06:34:03
RT @davidfaber: Covidien makes clear it is not going to be like Shire: http://t.co/MIUopPxnst $COV
Irma Doucet
22 Oct 14 06:02:15
$COV Latest Updates on Covidien plc (NYSE:COV) http://t.co/P7VAoRcv2B
Clair Voight
22 Oct 14 06:02:14
$COV Covidien Rises As Medtronic Maintains Merger-Specific Language In Its Filing http://t.co/qjFzBTRODr
HotKeyTrading
22 Oct 14 06:00:03
Popular Stock Picks By Consensus: $COV $NKE $BBBY $MRK $GILD $BIDU $BRCD $NLY $ATVI $T $SYMC $AXP $MET $EMC $CMCSA http://t.co/Vv2VEn80mr
				
				
By  +Follow December 9, 2013 7:38AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.