Medtronic Aquires Kyphon With Noteworthy Connections

Medtronic Inc recently announced its intent to acquire Kyphon Inc for just $3.9 billion (see article from DealBook). An IntellectSpace Knowledge Map presenting the ties between the companies allows us to investigate how common connections may have motivated this deal.   

As shown on the Knowledge Map, John T. Treace (Kyphon’s Chairman) can be directly linked back to Medtronic, as he served as President until 2000 - after the company’s merger with Xomed. As Treace joined Kyphon soon after his departure from Medtronic, he likely played a significant role in bringing the companies together.

The Knowledge Map also shows connections through American Medical Systems linking a number of former Medtronic executives to Elizabeth H. Weatherman, a Kyphon board member who left her post as director at AMS earlier this year. It’s possible that prior to her departure at AMS, Weatherman may have had conversations with these former Medtronic executives about the possibility of a partnership between Kyphon and Medtronics.

One last notable relationship that may have influenced Medtronic’s interest in Kyphon is that shared between William A. Hawkins (President, COO and board member of Medtronic) and Bradley W. Paddock(VP at Kyphon); both are linked to Ethicon Endo Surgery, a division of Johnson & Johnson. As President of the company until 1997, Hawkins may have known Paddock, who held management positions in sales between 1996 and 1999. This relationship then could have helped to build the foundation of the present communications about joining Medtronic and Kyphon.

Click here for an interactive version of this IntellectSpace Knowledge Map (Internet Explorer browsers only): http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=2e8daa1a-8f5c-4aad-86d3-2005fffe2344