Philips closes $2B Spectranetics acquisition

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.

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