Covidien has signed a definitive agreement to acquire all outstanding capital stock of Barrx Medical for around $325m.

The acquisition will expand Covidien’s ability to treat Barrett’s oesophagus by giving it access to Barrx’s bipolar radiofrequency ablation devices.

Barrx’s Halo(90), Halo(90) Ultra and Halo(360+) ablation catheters remove diseased tissue and allow normal cells to regrow.

Barrx Medical president and CEO Greg Barrett said that the company expects the acquisition to enable the clinical trial evaluation of the Halo system in other portions of the gastrointestinal tract as well.

Upon completion of transaction, Covidien will include Barrx Medical business in its Energy product line in the medical devices segment.

The transaction, subject to customary closing conditions and certain regulatory approvals, is likely to close by the end of January 2012.