Medical device maker Volcano (NSDQ:VOLC) signed a definitive agreement to purchase all outstanding shares of Israeli imaging software maker Sync-Rx for a total price of $17.3 million.
Sync-Rx, which develops programs that optimize imaging during transcatheter cardiovascular interventions, will continue to operate in Israel and is expected to retain nearly all of its workers, according to a regulatory filing.
"This transaction represents a strategic step in the advancement of our multi-modality platform," Volcano president & CEO Scott Huennekens said in prepared remarks. "Sync-Rx’s technology provides Volcano with a platform on which to build a range of advanced software features that will aid clinical decision-making by providing angiography and intra-body image enhancement, measurements and non-invasive imaging and intravascular co-registration capabilities, and future opportunities in physiology and peripheral and minimally invasive structural heart therapy guidance."
Volcano is hoping Sync-Rx’s technology will prove a boon by providing more documentation and data that validates percutaneous coronary interventions, which are under heightened scrutiny as health systems become ever more conscious of cost and the need to justify procedures.
The San Diego-based company recently lowered its sales outlook for the year due to continued softness in the PCI market, especially in the U.S.
Volcano expects to pay an aggregate price of $17.3 million for Sync-Rx, which includes transaction expenses and debt owed by Sync-Rx at closing. The purchase price is also subject to adjustments based on Sync-Rx’s working capital, according to regulatory filings.
VOLC shares were up 0.9% to $27.56 as of about 9:40 a.m. today.
