Covidien completes acquisition of Barrx Medical

Covidien has completed its takeover of Barrx Medical, a deal which will provide a promising new growth platform for the company.

The deal has been valued at around $325 million (210.6 million pounds), which takes into account the cash payment and the acquisition of short-term investments, with all of the outstanding capital stock of Barrx having now been acquired.

Further earn-out payments will also be made depending on the achievement of certain clinical milestones.

Barrx has expressed confidence that its acquisition by Covidien will support its growth objectives, allowing it to leverage its core strengths to further the development of radio frequency technologies.

Bryan Hanson, group president for surgical solutions at Covidien, said: "We are embarking on a promising future … We look forward to accelerating the growth of the Halo ablation technology product line and expanding it worldwide."

This comes after the firm announced last month that it plans to spin out its pharmaceuticals business unit, in order to increase its focus on core operations.