The medical company Medtronic announced it will acquire the device maker Kyphon in a transaction valued at approximately $3.9 billion. The transaction was unanimously approved by directors of both companies.

The acquisition price represents a 32% premium over Kyphon’s closing stock price on July 26, 2007 of $53.68 and a 35% premium over Kyphon’s 30-day average trading price of $52.76 per share.

“We expect our combination with Kyphon to help accelerate the growth of Medtronic’s existing spinal business by extending our product offerings into some of the fastest growing product segments and enabling us to provide physicians with a broader range of therapies for use at all stages of the care continuum,” said Art Collins, chairman and chief executive officer of Medtronic

While Medtronic is specialized in treatment options for younger patients who are suffering from scoliosis and degenerative disc disease in the cervical and lumbar spine, Kyphon is focusing on treatment older patients with compression fractures and spinal nerve damage

“Importantly, the combination will also enable more patients of all ages to receive the benefits of modern, minimally invasive spinal treatments earlier in their care, with life-style friendly options that are simpler, faster and less invasive than many traditional surgical treatments.” added Art Collins.