Medtronic Inc. (MDT) Buys Kyphon Inc. (KYPH) for $3.9B
Medtronic Inc. said Friday it will acquire Kyphon Inc. for $71 a share in cash, or about $3.9 billion.
Minneapolis-based Medtronic's (NYSE:MDT - News) purchase price represents a 32 percent premium over Sunnyvale-based Kyphon's (NASDAQ:KYPH - News) closing stock price on July 26 of $53.68, and a 35 percent premium over Kyphon's 30-day average trading price of $52.76 per share.
The transaction has been unanimously approved by the boards of directors of both companies.
"We expect our combination with Kyphon to help accelerate the growth of Medtronic's existing spinal business by extending our product offerings into some of the fastest growing product segments and enabling us to provide physicians with a broader range of therapies for use at all stages of the care continuum," said Art Collins, chairman and CEO of Medtronic.
The two companies said their product lines and geographic presence are complementary. While both companies have expertise in minimally invasive, highly effective treatments, Medtronic's spinal surgery focus has been on providing treatment options for younger patients who are suffering from scoliosis and degenerative disc disease in the cervical and lumbar spine. Kyphon's focus has been on treating older patients suffering from vertebral compression fractures and spinal stenosis.
Staffing and other details were not disclosed.
Kyphon on Friday reported second quarter net income of $11 million or 23 cents a share, up from $9.5 million or 21 cents a share in the same period last year.
Kyphon said worldwide revenue was $144.3 million, an increase of 43 percent over the $101.1 million reported for the second quarter of 2006. Total U.S. revenue for the quarter increased 36 percent to $110.7 million over the same period in 2006, while total international revenues increased 73 percent to $33.6 million. Kyphon's core spinal fracture management and repair product revenue grew 19 percent to $120.6 million.
Excluding items, the company would have earned 26 cents a share, compared to non-GAAP earnings of 21 cents a share a year ago.
Published July 27, 2007 by the Silicon Valley / San Jose Business Journal
Minneapolis-based Medtronic's (NYSE:MDT - News) purchase price represents a 32 percent premium over Sunnyvale-based Kyphon's (NASDAQ:KYPH - News) closing stock price on July 26 of $53.68, and a 35 percent premium over Kyphon's 30-day average trading price of $52.76 per share.
The transaction has been unanimously approved by the boards of directors of both companies.
"We expect our combination with Kyphon to help accelerate the growth of Medtronic's existing spinal business by extending our product offerings into some of the fastest growing product segments and enabling us to provide physicians with a broader range of therapies for use at all stages of the care continuum," said Art Collins, chairman and CEO of Medtronic.
The two companies said their product lines and geographic presence are complementary. While both companies have expertise in minimally invasive, highly effective treatments, Medtronic's spinal surgery focus has been on providing treatment options for younger patients who are suffering from scoliosis and degenerative disc disease in the cervical and lumbar spine. Kyphon's focus has been on treating older patients suffering from vertebral compression fractures and spinal stenosis.
Staffing and other details were not disclosed.
Kyphon on Friday reported second quarter net income of $11 million or 23 cents a share, up from $9.5 million or 21 cents a share in the same period last year.
Kyphon said worldwide revenue was $144.3 million, an increase of 43 percent over the $101.1 million reported for the second quarter of 2006. Total U.S. revenue for the quarter increased 36 percent to $110.7 million over the same period in 2006, while total international revenues increased 73 percent to $33.6 million. Kyphon's core spinal fracture management and repair product revenue grew 19 percent to $120.6 million.
Excluding items, the company would have earned 26 cents a share, compared to non-GAAP earnings of 21 cents a share a year ago.
Published July 27, 2007 by the Silicon Valley / San Jose Business Journal
Labels: KYPH, Kyphon Inc., MDT, Medtronic Inc.
posted by Stock Administrator @ 3:13 PM
1 Comments:
At 6:42 PM ,
Scott said...
I just read that this acquisition likely had a lot to do with some executive ties between either company. Kyphon's current chairman used to be the president of Medtronic, and there are some other pretty strong connections that NewsVisual goes into. Here's a link to their article with more detail: http://www.newsvisual.com/newsvisual/2007/07/medtronic-aquir.html
Post a Comment
<< Home