Covidien to Buy VNUS Medical for $440 million
May 11, 2009
Covidien Ltd said on Friday it would acquire VNUS Medical Technologies for $400 million in cash to expand its vascular business.
San Jose, Calif.-based VNUS makes products that treat varicose veins and venous reflux disease, a circulatory condition that causes blood to pool in the veins of the leg. The condition can cause swollen veins and discolored skin.
Covidien, based in Dublin, Ireland, manufactures, distributes and services a diverse range of product lines in four segments: Medical Devices, Imaging Solutions, Pharmaceutical Products and Medical Supplies.
VNUS's products include the VNUS Closure system, which employs a disposable radiofrequency catheter that controllably heats and closes diseased veins.
In a randomized clinical trial, the system was proven to be as effective as vein stripping, an open surgical procedure that has been the historical standard for treatment for venous reflux disease, but with fewer side effects and faster recovery, the company said.
Commenting on the merger, Joe Almeida, president, Medical Devices for Covidien, said, "The VNUS product line will be an important addition to our innovative portfolio of vascular intervention products."