Philips acquires U.S. firm Spectranetics in €1.9 billion deal
Philips is acquiring American company Spectranetics for 1.9 billion euros, the Dutch company announced on Wednesday. Spectranetics is a leader in developing innovative methods for vascular surgery and with this acquisition, Philips is gaining technology that closely matches its own range of technologies for surgeries using imaging equipment, according to the Dutch health technology company.
The transaction is expected to be complete by the third quarter of this year. Spectranetics' board of directors already approved the transaction and is now presenting it to its shareholders. Philips is paying 38.50 dollars per Spectranetics share, about 27 percent above the company's closing price on Wall Street on Tuesday.
Philips CEO Frans van Houten expects that this transaction will be revenue growth and profit accretive by next year. "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.”
According to Scott Drake, CEO of Spectranetics, this acquisition will bring significant value to the company's shareholders. “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." he said. "We have tremendous respect for Philips, as our two companies have a shared view on the importance of culture, values, and innovation, as well as a shared focus on improving patients’ lives around the world. We look forward to a smooth transition.”