Guidant Corp. and Johnson & Johnson have reached a new agreement whereby J&J will acquire Guidant for $24.2 billion in fully diluted equity value. The boards of directors of both companies have unanimously approved the revised J&J offer and the Guidant board of directors recommended that Guidant shareholders vote in favor of the revised merger agreement at the scheduled January 31 shareholder meeting.

"This agreement with J&J provides significant financial value and certainty for shareholders," said James Cornelius, Guidant's chairman and chief executive officer. "Together with J&J, we will have the Resources to continue to build upon the existing Guidant businesses in our pursuit of meaningful innovations to address cardiovascular disease."

J&J chairman and chief executive officer William C. Weldon indicated that the companies are eager to close and begin to implement the integration plans they have been developing throughout the past year. "Together, we are ready to execute our plans focused on creating the world's broadest and most comprehensive cardiovascular device company that will bring meaningful technology solutions to address this devastating disease," he said. "The legacy of the Guidant organization and the people who have built it are assets that serve as a firm foundation for future growth in this important category."