St. Jude Medical is paying $1 billion to buy Plymouth-based AGA Medical Holdings, a maker of devices that treat heart defects and blood vessel abnormalities, primarily in children.
Morningstar analyst Debbie Wang said the AGA acquisition is in keeping with St. Jude's drive to expand its portfolio of products.
"This is a company that has really been branching out, trying to cover all aspects of cardiac care," Wang said. "AGA has all these little devices that plug holes in the heart, usually congenital problems."
AGA also is trying to get regulatory approval for some of its products designed to treat strokes or aneurysms caused by heart defects. The company says a green light from regulators could boost sales into the billions.
The deal also call for St. Jude to take on $225 million in debt held by AGA. The transaction is expected to close by the end of this year.