As a result, the transaction is expected to be accretive to Philips’ reported earnings per share by 2017, and Philips targets an EBITA margin for its image-guided therapy business group of around 20% by 2017.December 17, 2014 — Philips Healthcare and Volcano Corp. entered into a definitive merger agreement, where Philips will purchase shares of Volcano for a total price of about $1 billion.The flexible design of the Infinix-i streamlines procedures and allows operators to obtain a wide range of imaging angles without repositioning the patient.Upon completion of the transaction, the Volcano business and its 1,800 employees will be part of a dedicated, new image-guided therapy business group within Philips, which will be led by Philips executive Bert van Meurs, an experienced leader in the health care industry with a proven track record in the image-guided therapy market.“I am very excited that Volcano will become part of Philips and join forces with its leading image guided therapy business,” said Scott Huennekens, Volcano president and CEO. This transaction allows us to provide our customers with an integrated solution to improve procedural outcomes at a decisive stage in the health continuum.”With 2013 sales of approximately $400 million, San Diego, California-based Volcano is a leader in catheter–based imaging and measurements for minimally invasive diagnostics and treatment of coronary artery disease and peripheral vascular disease. Presently employed at Volcano/Philips corporation.. Clinical Consultant for peripheral and cardiac.
The Phoenix Atherectomy System is intended for use in atherectomy of the peripheral vasculature. “This transaction will be beneficial for our shareholders, customers, partners and employees. Our combined sales forces will be able to capture immediate cross selling opportunities, while our joint R&D teams will be able to develop new solutions to address significant unmet needs in the minimally invasive treatment of cardiovascular diseases.”“Image-guided therapies provide significant benefits for healthcare systems and patients, including reduced patient trauma, shorter recovery times and hospital stays, and lower costs,” Mr. Van Houten added. FORS uses light traveling through hair-thin fiber optics inside special FORS enabled catheter and guidewires.Figure 1: Segmentation performed on the left atrium, left ventricle and mitral bioprosthesis. Image courtesy of Siemens Healthineers.“The agreement to acquire Volcano significantly advances our strategy to become the leading systems integrator in image-guided therapies,” said Frans van Houten, Philips CEO. In addition, our shared expertise in the image-guided therapy market will allow us to further globalize our leading IVUS and FFR product offerings and enter new product areas.
The system is not intended for use in the coronary, carotid, iliac or renal
The tender offer is not subject to any financing conditions.
Volcano Corporation Corporate Headquarters 3721 Valley Centre Drive, Suite 500 San Diego, CA 92130 USA Phone: 800.228.4728 Fax: 858.720.0325 Volcano Corporation Manufacturing Headquarters 2870 Kilgore Road Rancho Cordova, CA 95670 USA Phone: 800.228.4728 Fax: 916.638.8812 The purchase will enable Philips to further expand its advanced imaging capabilities of its angiography suite.
Volcano is a leader in intravascular ultrasound (IVUS) and fractional flow reserve (FFR) catheter measurements used in the interventional cardiology cath lab.
In addition, the company possesses the broadest product portfolio around these two technologies, a leading IP position and a nascent peripheral vascular therapeutics business that targets a segment with a double-digit growth rate.The purchase will enable Philips to further expand its advanced imaging capabilities of its angiography suite. ... Philips makes no representations or warranties of any kind with regard to any third-party websites or the information contained therein. The additional technology will enhance Philips' angiography imaging system suite offerings.The combination of two industry leaders will create new sources of recurring revenue streams and increase sales growth for Philips in the EUR 4 billion image-guided therapy market opportunity. Furthermore, the combination of Volcano’s proven clinical development and commercialization capabilities with Philips’ next generation of imaging and measurement technologies, will allow Philips to introduce new solutions in higher growth segments such as the minimally invasive treatment of heart rhythm disorders and structural heart diseases. The acquired assets will bolster the Dutch company’s heart disease therapy portfolio and equip it …
We look forward to working closely with Philips and ensuring a smooth transition and closing.”The board of directors of Volcano has unanimously approved the transaction and recommends the offer to its shareholders.