Endo Pharma to Acquire American Medical Systems- Cost $2.9 Billion

Endo has pretty much been in the drug/generic business and with acquiring AMS, it brings the addition of medical devices and both companies have products that are in the men and women’s pelvic health area. This is a big price to pay and when you visit the AMS site it was interesting to see a page that solicits ideas and suggestions for new products, and we might be seeing more pages like this too I would guess. BD

Endo Pharmaceuticals (Nasdaq: ENDP) and American Medical Systems (AMS) (Nasdaq: AMMD) announced today that they have entered into a definitive agreement under which Endo will acquire AMS, a leading provider of world-class devices and therapies for male and female pelvic health, for $30 per share, or $2.9 billion in cash, which includes the assumption and repayment of $312 million of AMS debt. The combined company will be positioned to deliver more comprehensive healthcare solutions across its diversified businesses in branded pharmaceuticals, generics and devices and services, in the key therapeutic areas of urology and pain.

AMS is a market leading provider of medical devices and therapies that help restore pelvic health, and is recognized as a technology leader for developing minimally invasive and more cost effective solutions, serving urologists, urogynecologists, and gynecologists. AMS' business consists of three segments: Men's Health, Women's Health and BPH (Benign Prostatic Hyperplasia) Therapy, with approximately 73 percent of its sales in the U.S. and the remainder coming from its international presence in Europe, Canada and the Asia Pacific and Latin America regions.

The acquisition will bring Endo scale in its devices and services business segment, and the combination of AMS with Endo's existing platform will provide additional cost-effective solutions across the entire urology spectrum. In addition, the acquisition will further Endo's diversification and increase revenue, earnings and cash flow streams. On a 2011 pro forma basis, the combined company, with approximately 4,000 employees, would have had revenues of approximately $3 billion and EBITDA of approximately $1 billion.