Dutch firm Royal Philips has signed a $1bn (€800m) agreement to acquire Volcano, a US-based provider of catheter-based imaging and measurement solutions for cardiovascular applications.
In accordance with the agreement, Philips will conduct a tender offer to acquire all of the issued and outstanding shares of Volcano for $18.00 per share.
Volcano offers catheter-based imaging and measurements for minimally invasive diagnostics and treatment of coronary artery and peripheral vascular diseases.
The combination of Volcano's clinical development and commercialisation 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.
Royal Philips CEO Frans van Houten said: "The agreement to acquire Volcano significantly advances our strategy to become the leading systems integrator in image-guided therapies.
"Volcano's impressive and unique product portfolio is highly complementary to our strong offering in live image-guidance solutions, creating an opportunity to accelerate the revenue growth for our image-guided therapy business to a high single-digit rate by 2017."
"Image-guided therapies provide significant benefits for healthcare systems and patients, including reduced patient trauma, shorter recovery times and hospital stays and lower costs."
The Dutch firm said that Volcano is the only firm in the industry with a leading position in both intravascular ultrasound (IVUS) imaging and fractional flow reserve (FFR) measurements, with sales of around $400m in 2013.
Following closing of the transaction in the first quarter of 2015, the Volcano business and its 1,800 employees will be part of a new image-guided therapy business group within Philips.
Image: Royal Philips to acquire catheter-based imaging and measurement solutions provider Volcano. Photo: courtesy of Koninklijke Philips NV.