Minneapolis company Medtronic, which produces medical devices, has agreed to buy its rival, Covidien PLC, which bases its operations in Mansfield.
According to The Boston Globe, the buy marks one of the largest takeovers in Massachusetts history.
Medtronic will pay $42.9 billion for Covidien, according to Reuters. That sum that reflects a 29 percent premium on the company’s value when the markets closed Friday, The Boston Business Journal reported.
Covidien currently employs just under 2,000 people in Massachusetts. It has 38,000 employees total. Although the company is based in Mansfield, it is incorporated in Ireland for tax purposes.
According to the BBJ, annual revenues for the newly-formed company, which will be named Medtronic, may reach up to $27 billion, a sum that nearly triples the $10.2 billion in annual revenue reported by Covidien for 2013.
Covidien is now the third largest medical device firm in Massachusetts, the BBJ also noted.