Spectranetics To Acquire AngioScore For $230 Million Plus Milestone Payments

(RTTNews) - Medical device maker Spectranetics Corp (SPNC) Tuesday agreed to acquire AngioScore Inc, a maker of cardiovascular, specialty balloons for $230 million in up-front consideration, along with additional contingent commercial and regulatory milestone payments.

Spectranetics said the deal will combine two companies committed to solving complex cardiovascular challenges in both the peripheral and coronary markets.

The deal is expected to expand Spectranetics' addressable markets, broaden the product pipeline, and add to Spectranetics' topline growth and drive significant operating efficiencies and savings.

The deal is expected to close on or near June 30, 2014.

The up-front consideration consists of $115 million in cash and $115 million of Spectranetics common stock, although, as permitted by the merger agreement.

AngioScore, based in Fremont, California, develops and markets the AngioSculpt technology platform, which is a differentiated, comprehensive portfolio of durable solutions to cross, prepare and treat the coronary and peripheral vasculature.

According to Spectranetics, on a a pro forma basis, the combined entity had $213.5 million of revenue in 2013. The deal is expected to be accretive in 2015 to Adjusted EBITDA. In 2015, Spectranetics expects to achieve $8 million to $10 million in cost synergies on a pre-tax basis.