Cardinal Health (CAH) - Get Cardinal Health, Inc. Report agreed to buy Viasys( VAS) for $42.75 a share in cash, or $1.5 billion.

Dublin, Ohio-based medical products distributor Cardinal said the deal will expand Cardinal Health's clinical and medical product offerings for global acute-care customers. The acquisition of Consohocken, Pa.-based Viasys also will give Cardinal an edge in the respiratory care market, which it puts at $4 billion annually.

The deal gives Viasys shareholders a 35% premium to Friday's closing prices.

While the Viasys acquisition is expected to have up to a dime-a-share worth of dilutive impact on non-GAAP EPS in fiscal 2008, Cardinal Health reiterated the range it previously provided of $3.95 to $4.15, including the impact of the Viasys acquisition and use of proceeds from the sale of its Pharmaceutical Technologies and Services segment to repurchase shares.

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