Philips splashes $1bn on Volcano
This article was originally published in Clinica
Imaging giant Philips is hoping acquisitions will help it out of its current slump, betting €800m ($1bn) on cardiovascular device specialist Volcano. The deal is worth $18 per Volcano share, a 57% premium over its closing price of $11.49 on 16 December, the day the acquisition was announced.
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While its traditional competitors are active in devices or capital equipment, Philips has set itself apart with its committed investment in health informatics, says CEO Frans van Houten, who wants to position the group as a leader in integrated care models.
The global market for diagnostic and guided interventional cardiology products is expected to reach $4.8bn by 2021, and is driven in large part by the rising elderly population and increasing burden of cardiovascular disease (CVD). Meddevicetracker expects that intracardiac echocardiography (ICE), guide wire-based intravascular stenosis assessment (FFR) and optical coherence tomography (OCT) systems will drive overall market growth, given their high demand, which is supported by clinical evidence needed to bring cost savings and improved outcomes. Physicians' preference for using noninvasive and minimally invasive diagnostic techniques in cases where results are inconclusive is also changing the landscape of innovation. In this feature, we'll take a closer look at the overall market and its regional perspective, the competitive landscape of the three fastest-growing segments ICE, FFR and OCT, and the latest emerging technologies, as well as provide insight into what physicians think of these technologies.
Philips is strengthening its hand in cardiac ultrasound with the addition of German ultrasound firm TomTec Imaging Systems, its seventh acquisition of the year. Financial terms of the deal were not disclosed.