Jun 30 2010
Somanetics Corporation and Covidien have recently declared that they have entered into a definitive merger agreement. Under the agreement, Covidien will purchase Somanetics’ outstanding shares in cash worth $250 million. The collaboration with Somanetics will enable Covidien to expand its product offerings and accrete its revenues and earning growth rates.
Somanetics’ noninvasive patient monitor, the INVOS (In-Vivo Optical Spectroscopy) Somatic/Cerebral Oximeter measures the brain’s blood oxygen levels. The oximeter also monitors the oxygen levels of the patients who have a likelihood of getting restricted blood flow. With the use of the INVOS oximeter, clinicians can take notice and correct several serious complications. The only somatic/cerebral oximeter to be available commercially and to enhance the outcomes of patients is the INVOS System
The transaction is conditional to customary closing conditions, which includes several regulatory approvals’ receipt. The transaction is anticipated to conclude at the end of July 2010. The companies’ Boards of Directors have given their approval for the transaction.
Somanetics’ executive officers and directors have given their confirmation for the plan of tendering Somanetics’ shares into the offer. At the conclusion of the transaction, Covidien will inform Somanetics as part of Covidien’s Oximetry-Monitoring product portfolio in the department of Medical Devices business.
Somanetics CEO, Bruce Barrett, stated that Somanetics is excited to collaborate with Covidien and to allow the shareholders of Somanetics to recognize the value for the investment. He added that Somanetics’ proprietary technology, the INVOS System harmonizes with Covidien’s monitoring and respiratory product line.