By Lisa Kerner
Charlotte, N.C., Sept. 28 - Covidien plc announced it will acquire Aspect Medical Systems, Inc. for $12 per share in cash in a transaction valued at approximately $210 million.
Both companies' boards of directors have approved the deal, which is expected to close by the end of 2009.
The merger agreement includes a termination fee of $8 million payable by Aspect, according to a form 8-K filed with the Securities and Exchange Commission.
"The acquisition of Aspect will allow Covidien to broaden its product offerings and add a market leading brain monitoring technology to its portfolio," Pete Wehrly, Covidien's president of respiratory and monitoring solutions, said in a company news release.
Covidien, a Dublin-based health-care products company, said it expects the merger to dilute fiscal 2010 GAAP earnings per share and to be slightly dilutive to 2010 EPS on a non-GAAP basis.
Aspect is a Norwood, Mass.-based company that develops brain-monitoring technology.
| Acquirer: | Covidien plc
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| Target: | Aspect Medical Systems, Inc.
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| Announcement date: | Sept. 28
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| Price per share: | $12.00
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| Termination fee: | $8 million
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| Expected closing: | By end of 2009
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| Stock price for target: | Nasdaq: ASPN: $7.67 on Sept. 25
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