THE HAGUE (AFP) – Dutch electronics giant Philips announced Wednesday it was buying US-based medical imaging company Volcano for $1.2 billion, as it sought to strengthen its hold on the high-margin healthcare technology market.
“Philips is to acquire Volcano for $18 per share (with) a total transaction value of $1.2 billion (962 million euros),” the Amsterdam-based Philips said in a statement.
The agreement to buy the San Diego-based Volcano, which makes catheter-based imaging and advanced blood flow measuring equipment, “advances Philips’ focused strategy in image guided therapy,” it said.
Philips added: “There is an increasing trend to use advanced catheters that are capable of producing ultrasound images of the interior of blood vessels or perform blood flow measurements.”
The deal to buy Volcano should speed up Philips’ sales growth “as the combined business is optimally positioned to address unmet needs in the 4.0 billion-euro image guided therapy market,” Philips said.
The deal is expected to be closed in the first quarter of 2015.
Philips announced in September it was splitting the company in two, separating its healthcare-lifestyle division from its historic lighting business in a dramatic move to streamline the 120-year-old giant.