Under the agreement, Philips will purchase all of the issued and outstanding shares of Spectranetics.
Spectranetics provides vascular intervention for the treatment of coronary and peripheral artery diseases, as well as lead management to allow minimally invasive removal of implanted pacemaker and implantable cardioverter defibrillator (ICD) leads.
The transaction is expected to bolster Philips’ business group of image-guided therapy, while it will also boost geographical expansion and commercialisation opportunities for Spectranetics products.
Royal Philips CEO Frans van Houten said: “Spectranetics’ highly competitive product range, integrated with our portfolio of interventional imaging systems, devices, software and services, will enable clinicians to decide, guide, treat and confirm the appropriate cardiac and peripheral vascular treatment to deliver enhanced care for patients with better outcomes, as well as significantly boost recurring revenue streams for Philips.”
The device portfolio of Spectranetics features various laser atherectomy catheters for blockage treatment using laser energy, the AngioSculpt scoring balloon for mechanically pushing aside a blockage, and the Stellarex drug-coated balloon to treat complex lesions.
Following the closure of the acquisition, Spectranetics, along with its 900 employees, will be integrated into Philips’ Image-Guided Therapy business.
Spectranetics president and CEO Scott Drake said: “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.”
The combined business of the firms is estimated to grow up to €1bn by 2020.
Expected to close in the third quarter of this year, the deal is subject to customary closing conditions and regulatory clearances.
Image: Philips North American headquarters. Photo: courtesy of Philips.