According to a June 28, 2017 press release, Dutch healthcare company Philips has agreed to buy Colorado Springs-based Spectranetics Corporation, a cardiac device manufacturer, for approximately 1.9 billion euros ($2.16 billion), inclusive of Spectranetics’ cash and debt. Philips states in the press release that the acquisition of Spectranetics will expand and strengthen Philips’ Image-Guided Therapy Business Group. According to the press release, Spectranetics is growing at a double-digit percentage rate and expects sales this year of around $300 million.
According to Spectranetics‘ website, its products include laser atherectomy catheters for treatment of arterial blockages with laser energy. In addition, Spectranetics produces drug-covered balloons to treat blockages. Philips stated that the drug-covered balloons are a key growth driver in Spectranetics’ portfolio. According to Philips, Stellarex drug-coated balloon is CE-marked and under review by the U.S. Food and Drug Administration (FDA) for premarket approval.
According to the press release, Philips is offering Spectranetics shareholders $38.50 in cash per share, which is a 27 percent premium to the closing price of the Spectranetics shares on June 27. According to Bloomberg, Philips also will buy back as much as 1.5 billion euros ($1.7 billion) of its own stock starting in the third quarter, and the share buyback program will run for two years.