Covidien, which specializes in medical devices, pharmaceuticals and medical supplies, agreed to buy ev3 Inc. at $22.50 a share in cash. That's about a 19 percent increase from ev3's stock price last Friday.
Richard J. Meelia, Covidien's chairman, president and CEO, said the acquisition will help his company expand its presence in the vascular market.
The deal is expected to be completed by July 31. Ev3 is relatively new publicly traded company, filing its IPO in 2005. The company raised $165 million in net proceeds in its IPO.
Ev3's stock was trading at $22.21 on the Nasdaq on Tuesday afternoon, up $3.29 a share.
