Medtronic in $42.9 billion deal to acquire Covidien

US medical technology and services company Medtronic (NYSE: MDT) has inked a definitive agreement to acquire Dublin, Ireland-based Covidien (NYSE: COV), a global health care technology and medical supplies provider.

Under the terms of the deal, Medtronic has agreed to acquire Covidien in a cash-and-stock transaction valued at $93.22 per Covidien share, or a total of around $42.9 billion, based on Medtronic’s closing stock price of $60.70 per share on June 13, 2014. The company also said it would move its executive headquarters to Ireland in the latest move by US firms to harvest lower corporate tax rates abroad.

Once the transaction is completed, Medtronic will have significantly advanced its position as the world’s premier medical technology and services company. The combined company will have a comprehensive product portfolio, a diversified growth profile and broad geographic reach, with 87,000 employees in more than 150 countries. The boards of directors of both companies have unanimously approved the transaction.