Medtronic & Xomed to merge in $800M deal

Medtronic Inc and Xomed Surgical Products have signed a merger agreementunder which the former will acquire all shares of Xomed, which claims to be the world's leading provider of surgical products for ear, nose and throat conditions. The transaction is valued at approximately $800 million with Xomed shareholders receiving $60 in the form of Medtronic stock for each share they now hold.

William George, Medtronic's chief executive, said that the merger with Xomed "is another important step in our strategy to build a broad base of market-leading franchises" beyond its presence in the field of cardiology. It was announced that James Treace, Xomed's chairman, will head Medtronic Xomed, which will be based in Jacksonville, Florida.