Covidien To Purchase Power Medical

NEW YORK (AP) -- Medical device maker Covidien PLC said Wednesday it will buy computer-assisted surgical cutting and stapling products maker Power Medical Interventions Inc. for $64 million, including debt.

Covidien said it will pay $2.08 per share for Power Medical, whose shares trade over-the-counter. The deal is expected to close by Sept. 25, and Covidien said it will not significantly add to its sales in fiscal 2009, which ends in September. It said the deal will lead to a slightly smaller profit in fiscal 2010.

The Langhorne, Pa.-based company's products will become part of the endomechanical part of Covidien's medical device business. Covidien, based in Ireland, said Power Medical had $9 million in revenue in 2008.

In afternoon trading, Covidien shares rose 41 cents to $38.35.

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