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Royal Philips Inhales Respironics

The Dutch giant will pay $5.1 billion for the maker of sleep-disorder products.
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Dutch conglomerate Royal Philips Electronics (PHG) - Get Koninklijke Philips N.V. NY Registry Shares Report agreed to acquire Respironics (RESP) , a maker of sleep-disorder treatments, for roughly $5.1 billion.

Philips will pay $66 a share for Pennsylvania-based Respironics, representing a 25% premium over the stock's closing price Thursday. The deal will be effected through a tender offer that's expected to begin Jan. 8.

Respironics makes products to treat obstructive sleep apnea, as well as ventilation systems and respiratory monitoring products. It will be added to Philips' health care unit.

The offer is not subject to any financing contingency, and is expected to be completed in the first quarter of 2008.

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Shares of Respironics were soaring $12.54, or 24%, to $65.65 in premarket trading Friday.