Philips acquired Volcano Corp

Volcano Corporation is the global leader in Intravascular imaging for coronary and peripheral applications, and physiology. The company has also offers a suite of peripheral therapeutics devices. The company broad range of technologies makes imaging and therapy simpler, more informative, and less invasive and offers physicians and their patients around the world with industry-leading tools that aid diagnosis and guide and provide therapy.

Dutch diversified company Philips has acquired Volcano Corp. for $1.2 Billion including debt, which is its largest healthcare acquisition in seven years and a bid to cash in on an aging population’s need for more complex treatments. Volcano makes equipment that allows doctors treating heart disease too see inside patient’s views and measure blood flows. This would lead to synergies in research and development and in sales. The deal is expected to add to Philip’s earnings per share by 2017.

Philips, until recently a diversified conglomerate that made everything from televisions to light bulbs to X ray machines, is spinning off its historic lighting division to focus on its higher margin healthcare business. Philips expects to see growth in the portion of healthcare spending allocated to technology, now only 5 percent of budgets, far behind staff and pharmaceutical costs.

Volcano makes catheters that can slide into veins to make ultrasound scans of the interiors of blood vessels, allowing doctors to treat without putting patients under the knife. Philips is a leading maker of the X-ray machines that map patient’s bodies as surgeons insert the catheters. The deal is Philips largest since the $5.1 Billion acquisition of sleep arena treatment company Respironics in 2007.