NEW YORK (CNNfn) - Siemens AG agreed Wednesday to buy Acuson Corp., a U.S.-based maker of ultrasound systems, for about $700 million, giving another boost to the German technology company's health-care operations.|
Siemens' health-care division, Siemens' Medical Engineering Group, will offer $23 cash for each share of Acuson (ACN: Research, Estimates) outstanding, a 47 percent premium over Acuson's closing price of $15.69 Tuesday.
In early Wednesday trading, Acuson shares gained $6.94 to a 52-week high of $22.63. The stock previously traded in a range of $9.81 to $16.68 over the past year.
Mountain View, Calif.-based Acuson makes Sequoia, the top-selling ultrasound imaging system in the United States. The company had revenue of $475.9 million last year and has more than 1,900 employees worldwide.
"This merger creates a premier ultrasound business," said Dr. Erich R. Reinhardt, president and CEO of Siemens' Medical Engineering. "Together our products will cover the entire market for ultrasound equipment and IT-networking, from portable devices to ultra-premium platforms."
The tender offer is expected to close by early November and the deal is anticipated to be complete by the end of the year.
Siemens shares added 0.2 percent to 157.30 euros in afternoon trading in Frankfurt.