Under the terms of the agreement, shareholders of Vital Signs will receive $74.50 per share in cash for each Vital Signs share they own.
Vital Signs will become part of GE Healthcare’s clinical systems business, a provider of advanced technologies for patient monitoring, anesthesia delivery and acute respiratory care. The strong strategic fit between the two businesses is expected to offer substantial customer benefits through complementary product and service offerings.
The transaction, which is subject to Vital Signs’s shareholder and regulatory approvals, as well as other customary conditions, is expected to close in the fourth quarter of 2008.
John Dineen, president and CEO of GE Healthcare, said: “This acquisition is consistent with GE’s strategy to invest in high-technology, innovative businesses that deliver top-line growth, earnings expansion and expanded margins.”