Cardiovascular device maker Covidien (UNKNOWN:COV.DL) has had an up-and-down year in 2013. Despite a gain of more than 26% from its stock, this household medical device name has seen sales growth slump to sluggish figures for the year as the device industry has fought against tough competition and pricing pressures in advanced economies like the U.S. and Europe.

What's the next step for big medical device makers like Covidien? Innovation -- and Covidien isn't thinking small. The company announced earlier this week that it will acquire innovative imaging device maker Given Imaging (UNKNOWN:UNKNOWN) for $30 per share. That's a steep premium to be paid, but is it worth it to inject a dose of growth into Covidien's outlook?

In the video below, Fool contributor Dan Carroll takes you through what you need to know from Covidien's acquisition of Given -- and how this under-the-radar purchase could be a huge boon for the company and investors heading into the long-term future.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Covidien. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.