Mon, Feb. 23, 9:38 AM
- Medtronic (MDT +0.2%) acquires privately-held Elizabethton, TN-based Advanced Uro-Solutions for an undisclosed sum. The company's lead product is the NURO percutaneous tibial nerve stimulation system for the treatment of overactive bladder (OAB). The 510(k)-cleared device consists of a small external stimulator and a single, reusable lead that provides temporary stimulation to the tibial nerve. Medtronic plans to launch the system in the U.S. in the next 12 months.
- OAB affects ~17% of women and 16% of men in the U.S.
Tue, Jan. 27, 8:23 AM
Nov. 28, 2014, 10:45 AM
- Medtronic (MDT +1.3%) secures EU approval for its $43B acquisition of Covidien plc (COV +1%) contingent on, as expected, Covidien selling Stellarex, its drug-coated angioplasty balloon. Spectranetics (SPNC +1.9%) agreed to purchase Stellarex several weeks ago for $30M. The FTC recently gave its blessing to the transaction as well.
- Previously: FTC clears Medtronic/Covidien marriage
- Previously: Spectranetics buys Covidien's DCB platform
Nov. 26, 2014, 3:57 PM
- The Federal Trade Commission approves the merger between Medtronic (MDT +1%) and Covidien plc (COV +1.2%) with the proviso that Covidien divest its drug-coated catheter business before completing the transaction. Covidien agreed to sell the business for $30M to Spectranetics (SPNC +1%) several weeks ago.
- Previously: Medtronic buying Covidien for $42.9B
Nov. 12, 2014, 4:53 AM
- Medtronic (NYSE:MDT) submitted concessions last Friday in a bid to secure regulatory approval for its $43B acquisition of Covidien (NYSE:COV), says the European Commission.
- The EU antitrust authority will decide by Nov. 28 whether to clear the deal.
- A takeover of its Irish rival would reduce Medtronic's overall global tax burden, although it has said that the takeover is not an "inversion" deal for tax reasons.
Oct. 3, 2014, 10:19 AM
- Shaking off the potential flak from Uncle Sam for using its foreign cash to buy Covidien (COV +5.2%), Medtronic (MDT +3.5%) instead will rely on $16B in external financing to complete the transaction. Covidien shareholders will still receive $35.19 per share in cash plus 0.956 of an ordinary share of Medtronic.
- All terms and conditions of the definitive agreement signed by the two firms in June remain unchanged.
Sep. 23, 2014, 7:45 AM
- U.S. Treasury Secretary Jack Lew says that the Obama Administration is prepared to institute rules to stop tax inversion deals. If so, it will do so without a sliver of Republican support. Barclays analyst Michael Leuchten says, "Washington is playing for time. It makes them look good and it allows Congress to maybe get its act together and maybe do something on the legislative side."
- Mr. Lew's comments have spooked the market a bit. European companies already involved in deals or rumored to be targets are all under pressure due to the perception that some of the deals already announced may be at risk.
- The U.S. firm in the best position is Horizon Pharma (NASDAQ:HZNP). It completed its tax inversion transaction with Ireland-based Vidara Therapeutics last week.
- Related tickers: (MDT -0.4%)(COV -0.5%)(ABBV -0.6%)(SHPG -0.7%)(OTCQB:SHPGF -1.5%)(PFE -0.7%)(AZN -0.1%)(SNN +0.1%)(SYK -0.8%)
Sep. 23, 2014, 3:45 AM
- Under Treasury Secretary Jack Lew’s crackdown on inversions, the Treasury Department announced new tax rules late yesterday to deter U.S. companies from moving their domicile to countries with lower tax rates.
- The tax changes make it harder for companies to complete overseas mergers, and should they choose to invert, companies will face a hard time using the cash accumulated abroad.
- The new rules are effective immediately and apply to all deals that have not closed by yesterday.
- Related M&A: MDT, COV, SLXP, MYL, CQB, OTC:FYFFF,BKW, THI
Aug. 26, 2014, 7:11 AM
- Medtronic (NYSE:MDT) acquires privately-held Dutch firm Sapiens Steering Brain Stimulation for ~$200M in cash. The company is developing a deep brain stimulation system with 40 individual stimulation points. It its designed to allow more precise stimulation of the target while reducing the potential for side effects.
- Medtronic will integrate Sapiens into its neuromodulation business.
Jun. 16, 2014, 7:26 AM| Comment!
Jun. 15, 2014, 9:37 PM
- Confirming earlier reports, Medtronic (MDT) is buying Covidien (COV) in a cash and stock deal valuing Covidien at $93.22 per share based on Medtronic's Friday close of $60.70. The price represents a near-30% premium to Covidien's Friday close.
- The transaction will have each share of Covidien converted into the right to receive $35.19 in cash and 0.956 shares of Medtronic.
- Medtronic expects the purchase to be accretive to cash earnings in the first fiscal year following the close (late this year, or early next), and significantly accretive thereafter, with $850M of annual pre-tax cost synergies by the end of fiscal 2018.
- As noted earlier, the purchase will have Medtronic moving its principal executive offices to Ireland, where corporate tax rates are lower than the U.S.
- Press release
- Previously: Medtronic in talks for $40B+ Covidien deal
Jun. 15, 2014, 10:59 AM
- Medtronic (MDT) is in advanced talks to buy Covidien (COV) for more than $40B. The deal could be announced as early as tomorrow.
- The tax inversion will allow Medtronic to be domiciled in Ireland, where Covidien is based, and permit the company to pay a lower corporate tax rate.
- Medtronic has a current market value of $61B, and Covidien is valued at $32B.
Jun. 4, 2014, 2:25 PM
- Bloomberg reports Medtronic (MDT +3.8%) is mulling a buyout offer for knee/hip implant maker Smith & Nephew (SNN +8.6%). SNN and i-banks are said to be "aware of Medtronic's interest.".
- The news service cautions Medtronic's prep work is at an early stage, and that "no offer is imminent." Nonetheless, Medtronic is viewed as "a more serious bidder" for SNN than Stryker (SYK -0.1%), previously rumored to be weighing an offer.
- Sources state a deal would likely result in Medtronic using SNN's corporate shell to change its legal residence to the U.K., and thereby take advantage of lower tax rates. Medtronic, which has a large offshore cash balance, has previously said it's open to a tax-inversion deal.
- Shares of both companies have spiked higher following the report. SNN's market cap is currently at $17B.
Aug. 12, 2013, 7:09 AM
- Medtronic (MDT) acquires closely held Cardiocom, a disease-management and patient-monitoring firm, for $200M.
- Cardiocom's products, such as home glucose monitors for diabetics and weight scales, help limit the cost of treating patients with chronic diseases. The market for such equipment is set to be boosted by a new health rule that sanctions hospitals when their patients return within a month of being released. Customers include health insurers.
Jan. 31, 2013, 4:09 PMDespite the marketshare gains Cardiovascular Systems (CSII) has made with its Diamondback and Stealth devices for treating narrowed or blocked arteries in the leg, the real value in the company may lie in its takeout potential, says Seeking Alpha contributor Stephen Simpson. CR Bard, Cook, BSX, JNJ, MDT and ABT all have sales forces in the peripheral treatment space, making them solid candidates for a possible buyout of CSII. | Comment!
Nov. 19, 2012, 8:57 AMMedtronic (MDT +0.8%) has apparently completed its $816M acquisition of China Kanghui Holdings (KH), a provider of orthopedic implants. "Kanghui brings Medtronic a broad product portfolio, a strong local research & development and manufacturing operation, (and) a vast China distribution network," says Medtronic's Chris O'Connell. | Comment!
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Medtronic PLC is engaged in providing medical technology alleviating pain, restoring health, and extending life of people. It currently functions in three operating segments that manufacture and sell device-based medical therapies.
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