Endo to acquire American Medical Systems for $2.9 billion

Acquisitive US drugmaker Endo Pharmaceuticals (Nasdaq: ENDP) has entered into a definitive accord to acquire American Medical Systems (AMS; Nasdaq: AMMD), a provider of world-class devices and therapies for male and female pelvic health, for $30 per share, or $2.9 billion in cash, which includes the assumption and repayment of $312 million of AMS debt. AMS’ shares leapt 32.1% to $29.50 on the news, while Endo edged 0.5% higher to $41.06.

The combined company will be positioned to deliver more comprehensive health care solutions across its diversified businesses in branded pharmaceuticals, generics and devices and services, in the key therapeutic areas of urology and pain. The transaction, likely to close in the third quarter of this year, is expected to be immediately accretive to adjusted diluted earnings per share upon close and accretive by $0.60 in 2012, said Endo, noting that it has fully committed financing in place to complete the deal.

AMS is a market leading provider of medical devices and therapies that help restore pelvic health, and is recognized as a technology leader for developing minimally invasive and more cost effective solutions, serving urologists, urogynecologists, and gynecologists. AMS' business consists of three segments: Men's Health, Women's Health and BPH (benign prostatic hyperplasia) Therapy, with approximately 73% of its sales in the USA and the remainder coming from its international presence in Europe, Canada and the Asia Pacific and Latin America regions.