Cardinal Health, a Dublin, Ohio-based medical products and services company, today announced it will acquire the medical technology company Viasys Healthcare in a cash and debt-acquisition transaction valued at $1.5 billion. The deal calls for Cardinal to purchase all outstanding Viasys common stock at a 36% premium of $42.75 per share.
The purchase of Viasys, headquartered in Conshohocken, Pa., would add complementary respiratory, neuro-care, orthopedics and medical systems products to Cardinals existing pharmaceutical, medical and clinical technology product lines, according to Bank of America analyst Robert Willoughby, who follows the company. The deal is also expected to greatly broaden Cardinals international sales. Currently, 40% of Viasys $610 million in annual revenue is generated from sales in Western Europe and Asia.
The Cardinal-Viasys deal comes a little more than a month after Cardinal sold its technologies and services segment to the Blackstone Group, an alternative assets-management company located in New York City, in an effort to focus more on its medical product lines. The deal is subject to regulatory clearance and is expected to be completed sometime this summer. -- by Shawn Rhea