Royal Philips announces Spectranetics takeover in all-cash deal

Royal Philips, a global leader in health technology together with the Spectranetics, a US-based global leader in vascular intervention and lead management for removing defribillator leads, today announced a definitive merger agreement.

In accordance with the terms of the deal, Philips would commence a tender offer to acquire all of the issued and outstanding shares of Spectranetics for $38.50 per share to be paid in cash upon completion.

That represented a 27% premium to the closing price of the US company's shares the day before.

The board of directors of Spectranetics had approved the transaction and recommended the offer to its shareholders. Transaction close was expected to take place in the third quarter of 2017.

The total transaction value was put at €1.9bn, inclusive of Spectranetics' cash and debt, while, Spectranetics grew double digits and projects 2017 sales to be in the range of $293m to $306m.

Colorado-based Spectranetics's standalone revenue growth was expected to be double-digit and adjusted EBITA to be positive by 2018, its Dutch suitor said in a statement.

Philips expected sustained high sales growth through new product introductions across a highly synergistic therapy device portfolio with the acquisition of Spectranetics, which was a leader in vascular intervention to treat coronary and peripheral artery disease, and in lead management for the minimally invasive removal of implanted pacemaker and implantable cardioverter defibrillator.

Philips itself boasted a leadership position in the €6bn-plus image-guided therapy market with a unique portfolio of interventional imaging systems and devices, planning and navigation software and services serving a large, global customer base and supported by a global network of leading clinical partners.

Both parties also claimed the transaction would enhance the geographical expansion of Spectranetics' products and commercialization opportunities in new, adjacent segments.

As of 1703 BST, stock in Spectranetics was standing 26.23% higher on the day at $38.4.