NEW YORK (AP) -- Johnson & Johnson said Monday it will pay $480 million for medical device maker Micrus Endovascular, adding a range of treatments for stroke and brain aneurysms.
Johnson & Johnson said it will pay $23.40 per share, marking a 5.5 percent premium to Micrus' closing price on Friday. Both companies' boards approved the deal, though it still needs shareholder approval. It is expected to close during the second half of 2010.
Micrus, based in San Jose, Calif., focuses on devices aimed at treating stroke and aneurysms. Revenue reached $91.1 million in the fiscal year ended in March.
Johnson & Johnson makes a wide range of pharmaceuticals and medical devices. Its Codman & Shurtleff business also makes devices aimed at treating brain aneurysms and neurovascular problems. The company's other units make consumer health care products, pharmaceuticals and medical devices.
The New Brunswick, N.J., company said the buyout could be slightly dilutive to earnings per share.
The announcement comes as drug and medical device maker Covidien moves closer to buying the endovascular device maker ev3. Covidien said in June it would pay $2.6 billion for the company and recently completed its tender offer for the stock.
In morning trading, Micrus shares rose $1.01, or 4.6 percent, to $23.20. Over the past year the stock has traded between $7.80 and $22.50.
Johnson & Johnson shares fell 12 cents to $60.42.