On Tuesday, the drug maker Covedian said that it is planning to buy ev3 Inc. in a deal which will cost it $2.6 billion. The drug maker plans to go ahead with the acquisition since it wants to makes its presence in stance and other vascular devices segment.

 Looking at the amount that it is paying, the total value per share comes down to $22.50. This means that it is paying a premium of 19 per cent as the closing price of ev3's shares was $18.92 on Friday last week. Since then, the share price has rise to $22.31 which means it is 19 per cent higher.

Talking about this, Covidien Chief Executive Officer Richard Meelia said in a press release, "The deal is in line with our strategy of becoming a leading partner with vascular surgeons, neurosurgeons, interventional cardiologists and interventional radiologists." This is going to be the largest acquisition made by Covedian since it broke away from Tyco International in 2007. The deal was announced by both the companies in a joint press release which means that it is going to happen finally.