Integra LifeSciences Holdings Corp. (Nasdaq:IART)

Covidien plc (NYSE:COV)

IART reported that it has entered into a definitive agreement with COV to acquire the Confluent Surgical product lines, including surgical sealants, adhesion barrier, and, most importantly, DuraSeal(TM).

Under the terms of the agreement, COV will receive an initial cash payment of $235 million from IART upon the closing of the transaction. Additionally, COV may receive up to $30 million, contingent upon the achievement of certain performance measures related to the transition of the Confluent Surgical business to IART .

Confluent Surgical products include: DuraSeal(TM), DuraSeal(TM) Exact/Xact, VascuSeal(TM) and SprayShield(TM). These products generated approximately $65 million in revenue (unaudited) during 2012 and gross margin comparable to Integra's regenerative medicine product portfolio.

Preliminarily, IART would expect the acquisition to add $57 million to $60 million in revenue in the first full year of the combination, and to then grow 3% to 5% longer term.

For the third quarter 2013, IART posted total revenues of $213.2 million, reflecting an increase of $3.2 million over the same period the prior year.

According to its outlook, IART expects full year 2013 revenues of $838 million to $843 million.

IART last trade was at $43.65 with a volume of 213,417 shares, while COV stock closed at $64.21 with a total of 1,965,909 shares traded on Monday.

IART offers innovative solutions in orthopedic extremity surgery, neurosurgery, spine surgery, and reconstructive and general surgery.

More about Integra LifeSciences Holdings Corp. (Nasdaq:IART) at www.integralife.com

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