Health technology company Royal Philips (Amsterdam, Netherlands) and vascular intervention and lead management solutions technology developer Spectranetics (Colorado Springs, CO) have entered into a definitive merger agreement. The acquisition will further expand and strengthen Philips' Image-Guided Therapy Business Group. Spectranetics is currently growing double digits, and projects 2017 sales to be in the range of $293 million to $306 million.
Spectranetics' portfolio includes a range of laser atherectomy catheters for treating blockages with laser energy in both coronary and peripheral arteries; the AngioSculpt scoring balloon used to mechanically push a blockage aside in both peripheral and coronary arteries; the AngioSculptX drug-coated scoring balloon, and the Stellarex drug-coated balloon, which treats common to complex lesions while inhibiting the recurrence of these blockages.
Upon completion of the transaction, Spectranetics and its 900-plus employees will become part of the Image-Guided Therapy Business Group within Philips. Spectranetics' standalone revenue growth is expected to be double-digit and adjusted earnings before interest, taxes, and amortization (EBITA) to be positive by 2018. Philips sees sustained high sales growth through new product introductions across a highly synergistic therapy device portfolio.
As a result, the combined Spectranetics and Philips Image Guided Therapy Devices business (Philips Volcano), within the Image-Guided Therapy Business Group, is expected to grow to approximately $1.1 billion by 2020.