Philips acquires Volcano Corporation for $1.2 Billion

Philips acquires Volcano Corporation for $1.2 Billion

Philips acquires Volcano Corporation for $1.2 Billion

Dutch Electronics juggernaut Philips agreed to buy Volcano Corporation, American medical device maker based in San Diego, for $1.2 Billion in cash-and-debt deal.

 As part of the deal Philips agreed to pay $18 a share for all Volcano oustanding shares, it’s about $1 billion in cash. The offer epitomizes 57 percent premium to Volcano Tuesday closing price $11.49.

 After the transaction Volcano would be unified into a new image-guided therapy group inside Phillips, which would be led by Bert van Meurs, Senior Vice Preisdent of Philips Helathcare.

 Philips announced would finance the transaciton by cash and new debt.

 “The agreement to acquire Volcano significantly advances our strategy to become the leading systems integrator in image-guided therapies,” Frans van Houten, said CEO of Philips in news release.  “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.”

 Volcano board of directors has approved the offer and has recommended that sahreholders accept it.

 Philips was collaborated with Voclano in past. In 2007, both companies allows clinicians to quickly and easily connect the Volcano IVUS system with the Allura Xper FD when additional imaging is required to complement cardiovascular X-ray during catheterization (cath) lab procedures.

 The transaction is subjet to regulatory approval and is expected to close in the first quarter of 2015.

 Mr. Stakebay says:

 This deal helps Philips to increase its portfolio of medical imaging devices and expand its product to Volcano customers. After the transaction Volcano would be unified into a new image-guided therapy group inside Philips, which would be led by Bert van Meurs, Senior Vice Preisdent of Philips Helathcare.

PHILIPS

VOLCANO CORPORATION

Revenue

$ 23.329 billion (2013)

$ 393.678 Million (2013)

Operating income

$ 1.991 billion (2013)

$ – 29.9 Million (2013)

Profit

$ 1.172 billion (2013)

$ – 34.494 Million (2013)

Total assets

$ 26.559 billion (2013)

$ 831.919 Million (2013)

Total Equity

$ 11.185 billion (2013)

$ 299.802 Million (2013)

Employees

102 194 (2013)

1800 (2013)

 

CEO of Philips…………………………..FRANS VAN HOUTEN…..(2011-present)…. € 4 972 694 (2013)

President and CEO of Volcano Corp…SCOTT HUENNEKENS….(2002-present)…..$ 4 495 483 (2013)

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