Tomahawk, WI 12/10/2013 (BasicsMedia) – Given Imaging Ltd. (NASDAQ:GIVN) is a $955 million market-capped company in the gastrointestinal market. The company’s products include camera equipped pills which patients can swallow to help doctors detect digestive system issues for appropriate action.

The company is reputed for its breakthrough medical solutions. Perhaps it is this reputation that has excited Covidien to offer $860 million for its takeover bid. The company is being taken over for $30 per share in an all-cash transaction.

Given Imaging Ltd. (NASDAQ:GIVN) has recovered massively in the past 12 months. From the stock trading at the lows of $13 per share, the stock has risen to the range of $30 per share. The announcement of the takeover deal has also had its gain impact on the stock. This suggest investors acceptance of the deal. However, a closer look at the stock seems to suggest that some investors have reservation for the deal.

It should be understood that joining forces with Covidien is going to help give GIVN the much needed push to transform the market as the company’s CEO and President Homi Shamir rightfully observed.

High-end medical solutions have a place in the present market. Patients and physicians are in need of breakthrough medical technologies especially in the gastrointestinal market where there are even more complications to be dealt with.

The takeover deal bears the promise for transforming this company. The deal requires shareholder approvals to close in March next year. The acquiring company is hoping that Given Imaging Ltd. (NASDAQ:GIVN) will add $40 to $50 million each quarter to its medical devices segment revenue. It is important noting that sales for medical devices for Covidien this year has hit $8.49 billion.

If the acquisition deal receives the backing of shareholders, the two companies expect to use their combined forces to penetrate the medical devices market and get the huge spending that is already projected in the segment in 2014. This makes the deal a perfect play for investors.

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