Under the terms of the agreement, the companies said that the shareholders of Vital Signs will receive $74.50 per share in cash for each Vital Signs share they own, which equates to approximately $860 million.
The Totowa, N.J.-based Vital Signs provides medical products applicable to anesthesia, respiratory, sleep therapy and emergency medicine.
Vital Signs will become part of GE Healthcare’s Clinical Systems business, a provider of technologies for patient monitoring, anesthesia delivery and acute respiratory care, according to the companies.
GE and Vital Signs said the transaction, subject to Vital Signs’ shareholder and regulatory approvals, as well as other customary conditions, is expected to close in the fourth calendar quarter of this year. The boards of directors of GE and Vital Signs approved the transaction. Vital Signs’ board of directors unanimously recommended the approval of the transaction to Vital Signs shareholders.
The transaction values Vital Signs at approximately $860 million, net of Vital Signs cash and investments as of March 31. Shareholders holding approximately 37 percent of Vital Signs’ outstanding common stock have agreed, among other things, to vote their shares in favor of the proposed transaction, according to the companies.