NEW YORK — Endo Pharmaceuticals Holdings Inc. said yesterday that it is buying urology and pelvic health company American Medical Systems Inc. for about $2.6 billion, expanding its medical device business.
Endo is offering $30 a share in cash — a premium of 34 percent to Friday’s closing price of American Medical’s shares. Endo will also assume $312 million in American Medical’s debt.
American Medical stock jumped $7.17, or 32.11 percent, to $29.50 on the Nasdaq.
American Medical makes devices and therapies for pelvic health, urology, and gynecology. The Minnetonka, Minn., company reported $542.3 million in sales in 2010. Almost half its revenue comes from sales of men’s health products and drugs for urinary incontinence and impotence.
In recent years Endo of Chadds Ford, Pa., has diversified its focus from pain drugs to include generic drugs and medical devices.
The company reported $1.72 billion in revenue in 2010.
The boards of both companies approved the sale, and Endo said the deal should close in the third quarter.