Medtronic to buy VidaMed for $326 mill

Medtronic of the USA, the world's largest medical device maker, hasannounced plans to acquire VidaMed, a firm in which it already has a 20% stake, in a deal valued at some $326 million. Medtronic is to pay $7.91 cash for each remaining VidaMed share, nearly a 40% premium over the stock's closing price on December 5.

The VidaMed purchase, which comes on the heels of the recent acquisitions of MiniMed and Medical Research Group in deals valued at $3.7 billion (Marketletter June 4), is expected to close during the first quarter of 2002, Medtronic notes.

Art Collins, Medtronic's chief executive, said the acquisition of VidaMed "complements our rapidly-growing urological business," and also gives the firm access to the latter's non-surgical TUNA therapy, for benign prostatic hyperplasia.