Spectranetics To Be Bought By Philips For $38.50 Per Share In Cash - Quick Facts

(RTTNews) - Spectranetics Corp. (SPNC), a vascular intervention and lead management solutions provider, announced Wednesday that it has entered into a definitive merger agreement to be bought by Royal Philips (PHG).

Under the deal, Philips will commence a tender offer to buy Spectranetics for $38.50 per share, to be paid in cash upon completion. The implied enterprise value is approximately 1.9 billion euros, inclusive of Spectranetics' cash and debt.

The transaction is expected to be accretive to Philips' revenue growth, adjusted EBITA margins and adjusted EPS by 2018.

The per share price represents a 27 percent premium to Spectranetics closing price on June 27. The board of directors of Spectranetics has approved the transaction and recommends the offer to its shareholders. The deal is expected to close in the third quarter of 2017.

The acquisition of Spectranetics is expected to further expand and strengthen Philips' Image-Guided Therapy Business Group. Spectranetics is currently growing double digits and projects 2017 sales to be in the range of $293 million to $306 million.

Upon completion of the transaction, Spectranetics and its more than 900 employees will become part of the Image-Guided Therapy Business Group within Philips. Spectranetics' standalone revenue growth is expected to be double-digit and adjusted EBITA to be positive by 2018.

The combined Spectranetics and Philips Image Guided Therapy Devices business within the Image-Guided Therapy Business Group, is expected to grow to approximately 1 billion euros by 2020.