Philips to Buy Medical Device Maker Spectranetics for 1.9 Billion Euros
Amsterdam, the Netherlands-based health technology company Royal Philips announced it is acquiring Spectranetics Corporation, a Colorado Springs, Colorado-based medical device maker, for 1.9 billion Euros.
Spectranetics’ device portfolio includes vascular intervention devices to treat coronary and peripheral artery disease and lead management for the minimally invasive removal of implanted pacemaker and implantable cardioverter defibrillator (ICD) leads.
Philips will offer $38.50 per share in cash for the medical device company, which represents a 27 percent premium to the company’s closing price on Tuesday, according to a Philips press release.
The implied enterprise value is approximately EUR 1.9 billion, inclusive of Spectranetics’ cash and debt, or about $2.16 billion in U.S. dollars.
The acquisition will help to accelerate Philips expansion in image-guided therapy devices to treat cardiac and peripheral vascular disease, the company said, and would strengthen Philips’ position in a 6-bilion-Euro market.
According to a Philips press release, Spectranetics is growing double digits and its device portfolio includes a range of laser atherectomy catheters for treatment of blockages with laser energy in both coronary and peripheral arteries and the AngioSculpt scoring balloon used to mechanically push a blockage aside in both peripheral and coronary arteries.
“Today’s exciting announcement follows a series of bolt-on acquisitions to strengthen our portfolio across the health continuum,” Frans van Houten, CEO of Royal Philips, said in a statement. “Building on the successful integration of the Volcano acquisition in early 2015, we are now accelerating our strategic expansion into therapy devices with the agreement to acquire Spectranetics.”
Scott Drake, president and CEO of Spectranetics, said in a prepared statement, “Combining Philips’ innovations in image-guided therapy with Spectranetics’ portfolio and expertise in the therapeutic device space will create exciting opportunities and allow us to accelerate growth. As part of Philips, we will have the scale and resources to expand Spectranetics’ portfolio of highly differentiated products, our robust innovation pipeline, and our clinical data compendium
