Philips closes $2B Spectranetics acquisition

August 10, 2017 By Fink Densford Leave a Comment

Royal Philips (NYSE:PHG) said yesterday it closed its $2.2 billion deal to acquire US vascular intervention device maker Spectranetics (NSDQ:SPNC).

With the closure, Spectranetics and its financial results will be consolidated into Philips image-guided therapy business, the company said. Philips said that Spectranetics employs over 900 individuals and is currently posting double-digit growth, with projected 2017 sales of approximately $300 million.

The $38.50-per-share deal valued Spectranetics at $2.16 billion (€1.9 billion), including cash and debt, and is a 27% premium on SPNC’s $30.40 closing June 27, a day before the deal was announced.

Philips said it expects the acquisition to be accretive to revenue growth, adjusted EBITA margin and adjusted EPS for its 2018 fiscal year.

“Spectranetics is a highly complementary addition to our Image-Guided Therapy business group and will strengthen its position in a EUR 6+ billion growth market. The completion of this acquisition will accelerate the realization of our strategic expansion into therapy devices. The combination of Spectranetics’ highly competitive product range and our leading portfolio of interventional imaging systems, devices, software and services will deliver enhanced care for patients by enabling clinicians to decide, guide, treat and confirm the appropriate cardiac and peripheral vascular treatment,” CEO Frans van Houten said in a press release.

Spectranetics portfolio of devices includes a range of catheters designed to treat coronary and peripheral artery disease and the removal of implanted pacemaker and implantable cardioverter defibrillator leads, Philips said, including the Stellarex drug-coated balloon.

Philips shares are down 1.3% today, at $37.11 as of 12:47 p.m. EDT.

Only a Few More Days to Register for the most anticipated conference of the winter!

DeviceTalks West is just a few days away. Join more than 300 of your peers for a day of world-class education, networking, and a technology exhibition featuring the leading companies in the industry.

Don’t miss out on this premier opportunity to come together and share perspectives with the best of the best in the industry.

REGISTER NOW

Use code LASTCHANCE to save an additional 20%.

Qosina launches e-commerce website redesign
Qosina has launched a newly redesigned e-commerce website that improves navigation and access. The company announced that the new website offers easier access to Qosina’s products and services. It features an updated product category structure, category-specific filtering to find components easily and downloadable documentation like safety data sheets, technical data sheets and compatibility information. “Our… […]
All Sensors adds pressure ranges to its compact sensor series
All Sensors (Morgan Hill, Calif.) said it has introduced additional pressure ranges to its BLC series. Applications for the series include medical devices, medical instruments and portable/hand held devices. The series now includes high-pressure ranges from 5 psi to 150 psi, offering design engineers performance for pressure ranges of ±1 inH2O through ±30 inH2O, and now 5 psi… […]
Synopsys releases new version of Simpleware
Synopsys (Mountain View, Calif.) has released a new version of its Simpleware 3D data visualization software, which is used in both life science and advanced materials and manufacturing applications. Improvements in the new Simpleware (Version O-2018.12) include: An intelligent number formatting system for better clarity of measurements and statistics. Refreshed icons for more efficient navigation of… […]
Solar Atmospheres hires new sales manager
Solar Atmospheres recently announced that it has hired Mike Paponetti as a sales manager at the company’s South Carolina facility. Paponetti will be responsible for leading sales efforts to maintain and promote sales for Solar Atmosphere in the Southeastern U.S. Prior to joining Solar Atmospheres’s South Carolina facility, Paponetti was regional sales manager at the… […]
Excelitas Technologies to buy Axsun Technologies
Excelitas Technologies (Waltham, Mass.) – a global provider of high-performance photonics – said today that it has signed a definitive agreement to acquire Axsun Technologies. Axsun (Billerica, Mass.) is a privately-held company that develops and produces MEMS-based light engines for high-performance medical imaging and industrial spectroscopy applications. Financial terms of the agreement were not disclosed. The deal… […]
November 2018 Special Edition: Women in Medtech
Lessons learned from top women leaders in medtech According to the Center for American Progress, women account for 47% of the country’s labor force and 52% of all professional-level jobs. The Equal Employment Opportunity Commission reports that just 20% of U.S. high-tech executives, senior officers and management are women, including pharmaceutical and medicine manufacturing and… […]
121nexus rebrands as Soom
121nexus recently announced that it is rebranding to Soom. As part of the rebranding, the company is also going to exclusively focus on the healthcare industry in its services. “Soom, meaning ‘breath,’ encapsulates all that the company stands for. Like a breath of fresh air, we’re rethinking how the healthcare industry uses proven technologies like… […]
This machine-learning system could help treat sepsis sooner
Massachusetts Institute of Technology researchers have developed a machine-learning system that could help clinicians decide when to treat patients for sepsis in the emergency room. Sepsis is one of the most common reasons for readmission to the hospital and one of the most common causes of death in the ICU. The researchers suggest that most… […]
Strata Skin Sciences adds license for excimer laser vitiligo treatment
Strata Skin Sciences(NSDQ:SSKN) said it has reached an agreement with an “internationally acclaimed health institution” giving Strata an exclusive license to treat vitiligo using its Xtrac excimer laser. In a novel treatment for vitiligo, the excimer laser incrementally increases the light emitted in the UVB range to restore pigmentation to skin areas affected with vitiligo.… […]
5 questions you need to ask when engaging a medical device outsourcer
A methodical, structured process is key when lining up a medical device outsourcer. That was one of the top takeaways from a webinar that Medical Design & Outsourcing held with top officials at contract manufacturing giant Integer last week. “It’s time well spent to do your due diligence, to dig into these details, and to… […]
In2Bones intros ‘see-through’ implant for flat feet
Orthopedic surgical device developer In2Bones announced the global launch of its “see-through” PitStop implant for children and adults with flat feet. One of the most common foot deformities, flat-foot often starts during adolescence and continues into adulthood. In2Bones (Memphis, Tenn.) developed the PitStop subtalar implant to restore the stability of a patient’s arch during the walking process. Get… […]