Royal Philips NV on Wednesday announced an agreement to acquire San Diego healthcare imaging company Volcano Corp. (VOLC) for $1 billion as CEO Frans van Houten rebalances the Dutch electronics company towards medical devices. Philips, of Amsterdam, has agreed pay $18 per Volcano share, a 57% premium to the stock’s Tuesday close. ‘Our combined sales forces will be able to capture immediate cross-selling opportunities, while our joint R&D teams will be able to develop new solutions to address significant unmet needs in the minimally invasive treatment of cardiovascular diseases,’ van Houten said in a statement. Wednesday’s agreement follows September criticism of Volcano’s board from 5.1% Volcano shareholder Engaged Capital LLC, an activist investor. Engaged had criticized the target for missing several opportunities and making ill-conceived acquisitions. The investor called for a strategic review, and Volcano pledged to consider Engaged’s concerns.
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