Covidien (NYSE:COV) continued the acquisition spree by it and Medtronic (NYSE:MDT) ahead of their blockbuster merger today, announcing the 4th acquisition since news of their $43 billion union broke last June.
Covidien said it paid an undisclosed amount for Sapheon and its VenaSeal device, a medical adhesive designed to close off the great saphenous vein to treat varicose veins and chronic venous insufficiency.
The VenaSeal device is already approved in Canada, Europe and Hong Kong; Sapheon filed the 1st module in its pre-market approval application for VenaSeal with the FDA in September 2013.
"Sapheon will significantly enhance Covidien’s global peripheral vascular business by providing additional treatment options for physicians and their patients who suffer from CVI," peripheral vascular president Brian Verrier said in prepared remarks. "Sapheon’s technology is complementary to our current portfolio, and this acquisition further demonstrates Covidien’s leadership in the CVI space. Our technologies are supported by industry leading clinical evidence, robust global physician training and a superior customer support infrastructure."
"If left untreated, varicose veins can progress into a chronic and life threatening condition," added vascular therapies chief medical officer Dr. Mark Turco. "The VenaSeal system is a minimally invasive technology, and unlike open surgery and other more invasive procedures, patients are often able to quickly regain their lifestyle."
Covidien said the deal will be "slightly dilutive" to adjusted earnings.
The Mansfield, Mass.-based medical device company kicked off the buying spree August 22, saying it acquired Reverse Medical and its line of vascular devices for an unspecified amount. Medtronic followed with the August 26 announcement of a $200 million buyout of Dutch deep-brain stimulation firm Sapiens SBS and, a day later, said it bought out the remaining 70% share of NGC Medical SpA in a deal valuing the Italian hospital management provider at $350 million.