Japan's Olympus to Acquire UK's Gyrus Group

Japan's Olympus said it would launch a 935 million pound ($1.92 billion) bid for British medical devices firm Gyrus Group to bolster its position in the surgical tools market.

Gyrus's board has recommended the 630 pence per share offer, Olympus said in statement. That represents a 57.5 percent premium to the last market price of 400 pence.

Olympus, which is the world's top maker of medical endoscopes and a major producer of digital cameras, said the acquisition would boost its offering of tools that can remove or treat tissue in a less invasive manner than traditional surgery.

Demand for so-called minimally invasive tools and procedures is growing due to rising medical costs and the ageing of society in industrialized nations.

Gyrus is strong in radio-frequency devices and energy-based technologies for minimally invasive surgical systems, Olympus said.

Olympus said the deal would create a medical systems business with revenues of about 360 billion yen.

Olympus said it would fund the acquisition through a combination of cash and a new debt facility.