Endo Pharmaceuticals Holdings Inc. (NSDQ:ENDP), once devoted solely to the drug market, began its foray into medical devices with a successful $2.9 billion cash buyout of American Medical Systems Holdings Inc. (NSDQ:AMMD).
Endo paid $30 per share for Minnetonka, Minn.-based AMS, which provides devices for male and female pelvic health. Chadds Ford, Pa.-based Endo also assumed $312 million of AMS debt.
"AMS accelerates our overall growth, and we are very excited about the potential of its current commercial portfolio, as well as potential new product introductions, said Endo president & CEO Dave Holveck in a release.
The transaction was not immediately approved by AMS shareholders and sued to block the merger. The device company settled the dispute for an undisclosed amount early this month “solely to avoid the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing,” the company said.
Endo and AMS announced the merger in April, projecting that the combined companies will draw $3 billion in revenue for FY 2011 and $1 billion in earnings before interest, tax, depreciation and amortization (EBITDA).
The company will have a workforce of about 4,000 with the addition of 1,200 AMS employees that spanning nine countries, according to its website.
AMS also recently announced its creation of an implant registry to catalogue penile prosthetic data and outcomes.