Medtronic has successfully completed the previously-announced acquisition of Covidien. Under the terms of the acquisition agreement, Medtronic Inc and Covidien plc are now combined under Medtronic plc.
“The culmination of this acquisition marks a significant milestone in our industry, creating a company uniquely positioned to alleviate pain, restore health and extend life for more patients around the world. We can now bring together the extensive and innovative capabilities of both Medtronic and Covidien with an underlying objective to solve healthcare’s biggest challenge – expanding access and improving clinical outcomes, while lowering costs,” says Omar Ishrak, chairman and chief executive officer of Medtronic.
Covidien and Medtronic Inc shares have now ceased trading on the New York Stock Exchange. The cash-and-stock transaction is valued at approximately US$49.9bn, based on Medtronic’s closing stock price of US$75.59 per share on 26 January 2015. Under the terms of the transaction, each ordinary share of Covidien outstanding as of the closing has been converted into the right to receive US$35.19 in cash and 0.956 of an ordinary share of Medtronic plc. Each share of Medtronic Inc common stock outstanding as of the closing has been converted into the right to receive one ordinary share of Medtronic plc.
Medtronic plc has its principal executive offices in Ireland, where both companies have a longstanding presence. The company’s operational headquarters will continue to be based in Minneapolis, USA.