Medical device and products maker Covidien Plc on Wednesday said it has a definitive agreement to acquire CV Ingenuity, a privately-held company focusing on treatments for peripheral arterial disease.
Financial terms of the deal, expected to close in the first quarter of 2013, were not disclosed.
Fremont, California-based CV Ingenuity's core technology is a drug-coated balloon system that is still in the investigational phase. Covidien said it does not expect the CV technology to receive U.S. regulatory approval until fiscal 2017.
Covidien reaffirmed its previous financial forecasts, despite additional expenditures and the negative impact of the acquisition on selling, general and administrative expenses.
It said it expects to increase research and development expenditures for the next several years to fund the clinical development of CV Ingenuity technologies.
Additional expenditures are expected to be more than $20 million in the second half of fiscal 2013 and more than $30 million in fiscal 2014.
Covidien's fiscal year ends in September.
Once the acquisition is completed, Covidien will report the CV Ingenuity business as part of its Vascular product line in the Medical Devices segment.
(Reporting By Debra Sherman; editing by John Wallace)