Image source: Chestnut Medical Technologies

Johnson & Johnson has signed a definitive agreement with Micrus Endovascular, a manufacturer of minimally invasive devices to address hemorrhagic and ischemic stroke, to be acquired in a cash-for-stock exchange.

Under the terms of the agreement, the San Jose, Calif.-based Micrus said its stockholders will receive at closing $23.40 for each outstanding share. The value of the transaction as of the anticipated closing date is estimated to be approximately $480 million, based upon Micrus Endovascular's 20.5 million fully diluted shares outstanding, according to the New Brunswick, N.J.-based J&J.

The boards of directors of J&J and Micrus have approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, similar regulation in other countries, Micrus stockholder approval and other customary closing conditions.

Micrus will join Codman & Shurtleff, the neuro device business of the DePuy family of companies within J&J. Codman and Micrus offer technologies for treating cerebral aneurysms responsible for hemorrhagic stroke. The Codman neurovascular portfolio includes bare platinum coils, vascular reconstruction devices and access devices.