Bayer AG of Germany has entered into an agreement to purchase Conceptus, the American contraceptives maker for US$1.1 billion. The German firm is furthering its position as the world's biggest healthcare provider for women.

Bayer's shares fell by 2.3% at 0823 GMT but will still launch a public tender to offer the purchase all of Conceptus shares for the price of US$31.00 per share. This was the price agreed upon with Conceptus's management group.

This offered price has a 19.7% premium over the share value at Friday's closing traded price. It also is 30 times the EBITDA or adjusted earnings before interest, taxes, depreciation and amortization of Conceptus.

The women's healthcare business of Bayer earned Eur31.5 billion or US$4.1 billion last year from sales of Yasmin contraceptive pill and Mirena intrauterine device. 

According to Andreas Fibig, Bayer unit head for HealthcCare Pharmaceuticals, "Our experience in the field of gynecology combined with our sales and distribution expertise will help to further develop Conceptus' business."