Amsterdam • Royal Philips NV said Wednesday it has agreed to acquire U.S. medical equipment maker Volcano Corp. for $1.2 billion in a deal that would beef up its presence in technology which allows doctors to see inside patients' hearts and veins during treatment.
In an agreement backed by Volcano's management, Philips will offer $1 billion for Volcano's stock, or $18 per share — a 57 percent premium to its closing price Tuesday of $11.49. Philips will also assume $200 million of debt.
The Amsterdam-based Philips, a major maker of medical imaging equipment, said the deal will allow it to sell its own products to Volcano's customer base, and vice versa. It intends to fold San Diego-based Volcano into an operating arm devoted to "image-guided therapy" —techniques that allow doctors to see inside patients' bodies.