The Federal Trade Commission and the Justice Departments Antitrust Division have cleared the way for medical-device maker Medtronic, Minneapolis, to move forward with its planned acquisition of spinal-device company Kyphon, Sunnyvale, Calif. The agencies have granted early termination of the acquisition waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976.
The deal, announced in July, calls for Medtronic to pay $3.9 billion in cash and debt assumption to purchase Kyphon. Shareholders would receive $71 per share of common stock, representing a 32% premium over the companys July 26 closing price.
If finalized, the acquisition will substantially broaden Medtronics current line of spinal products and add interventional radiologists and neuro-radiologists to the companys existing customer base of orthopedic and neurological surgeons.
Completion of the deal is expected in early 2008, pending approval of Kyphons stockholders. Investors will meet Oct. 16 to vote on the Medtronic offer. -- by Shawn Rhea