Philips to buy US imaging firm

DUTCH electronics giant Philips announced yesterday that it was buying US-based medical imaging company Volcano for $1.2 billion (R14.02bn), as it sought to strengthen its hold on the high-margin, health-care technology market. “Philips is to acquire Volcano for $18 per share with a total transaction value of $1.2bn,” the Amsterdam-based Philips said in a statement. The agreement to buy the San Diego-based Volcano, which makes catheter-based imaging and advanced blood flow measuring equipment, “advances Philips’ focused strategy in image-guided therapy”, it said. Philips added: “There is an increasing trend to use advanced catheters that are capable of producing ultrasound images of the interior of blood vessels or perform blood flow measurements.” The deal to buy Volcano should speed up Philips’ sales growth “as the combined business is optimally positioned to address unmet needs in the e4bn (R58.3bn) image-guided therapy market”, Philips said. The deal is expected to be closed in the first quarter of 2015. – Sapa-AFP