Health care giant Johnson & Johnson is to acquire Guidant, a developer of cardiovascular medical products, for $25.4 billion.
Guidant and Cordis Corporation, a Johnson & Johnson company, will become part of a newly created cardiovascular device unit within Johnson & Johnson. The new franchise will be named Guidant while the Cordis name will be retained for select businesses within the franchise.
Guidant business units design and develop cardiac rhythm management (e.g., pacemakers and implantable cardioverter defibrillators), vascular intervention, cardiac surgery and endovascular products – businesses that complement Johnson & Johnson’s products and services in cardiology and medical devices.
The boards of directors of Johnson & Johnson and Guidant have already given their respective approvals to the transaction, which is still subject to clearance under the US Hart-Scott-Rodino Antitrust Improvements Act, the European Union merger control regulation, and other customary closing conditions.
The agreement will also require the approval of Guidant’s shareholders.