Medical products giant Bayer is set to acquire US-based Conceptus for $1.1bn in order to broaden the company's contraception portfolio.
The multinational enterprise has signed a merger agreement with Conceptus, the company behind Essure, the leading non-surgical permanent birth control method being sold internationally.
Within the next two weeks, the company will launch a public tender offer to acquire all shares of Conceptus at $31.00 per share.
Bayer CEO Dr Marijn Dekkers said the company is committed to contributing to its growth with strategic acquisitions.
"The acquisition of Conceptus represents an excellent fit for our HealthCare business - specifically in the United States, the world's most important health care market," said Dekkers.
The company says the acquisition will not only help it provide a complete range of short-term, long-term and permanent contraceptive choices for women, but will also complete its portfolio of long-acting intrauterine systems and short-acting oral contraceptives.
Bayer HealthCare Pharmaceuticals president Andreas Fibig said; "Our experience in the field of gynecology combined with our sales and distribution expertise will help to further develop Conceptus' business".
Conceptus believes that the proposed acquisition will help all its customers and patients with increased access to the benefits of Essure.
Conceptus president and CEO Keith Grossman said; "We believe that under Bayer's ownership, the Essure product will more rapidly become the standard of care in our established markets, and will benefit in new markets from Bayer's global presence."
Essure, which obtained US FDA approval in 2002, is claimed to be the only surgery-free and hormone-free permanent birth control method that can be performed under a physician's supervision in less than 10 minutes.
The procedure, which has been undertaken by about 700,000 women worldwide to date, is claimed to have no risks associated with general anesthesia or tubal ligation and is 99.8% effective based on a five-year follow-up and zero pregnancies reported in clinical trials.
Bayer expects to close the acquisition by mid 2013, subject to various customary conditions including anti-trust approval in the US.