Covidien has announced it will buy Given Imaging for $30 per share in cash, for a total of approximately $860 million.

The purchase will allow Covidien to expand in the gastrointestinal market globally. Given Imaging has technology for GI diagnostics, including its flagship product, the PillCam, which is a swallowed capsule endoscope.

“Acquiring Given will enable Covidien to significantly expand its presence in a $3 billion GI market,” said Bryan Hanson, group president, Medical Devices & U.S., Covidien.