Covidien, a global healthcare products company, will acquire all of the outstanding shares of Given Imaging, a provider of technology platforms for visualizing, diagnosing and monitoring the digestive system, for $30 per share in cash, for a total of approximately $860 million. Covidien intends to finance the transaction through cash on hand.

This transaction provides Covidien additional scale and scope to serve the multibillion dollar gastrointestinal (GI) market and supports the company's strategy to comprehensively address global specialties and procedures.

Given Imaging’s portfolio includes its flagship PillCam, a minimally-invasive, non-sedation, swallowed optical endoscopy technology for the small bowel, esophagus and colon. In total, Given Imaging has seven product lines across 21 global GI disease states. The company also offers GI functional diagnostic solutions including ManoScanhigh resolution manometry, Bravo capsule-based pH monitoring, Digitrapper pH-Z monitoring and SmartPill motility monitoring systems.

The transaction is subject to customary closing conditions, including Given Imaging shareholder approval and regulatory approvals, and is expected to be completed by March 31, 2014. The boards of directors of both companies have approved the transaction.