Volcano Up 55% On Acquisition News
Volcano Corporation (NASDAQ: VOLC) shares soared over 50 percent following news that it will be acquired by Royal Philips NV for approximately $1 billion.
"Volcano's impressive and unique product portfolio is highly complementary to our strong offering in live image- guidance solutions, creating an opportunity to accelerate the revenue growth for our image-guided therapy business to a high single-digit rate by 2017," according to Philips' Chief Executive Frans van Houten.
Dow Jones reported that Volcano is the market leader in making flexible tubes that can produce ultrasound images of blood vessels as well as consoles to measure blood flow. The company, which aims to make products to help treat cardiovascular diseases in less invasive ways, reported sales last year of about $400 million.
Volcano recently traded at $17.83, up 55.19 percent.
Another company in the cardiovascular medical device business is Spectranetics Corp (NASDAQ: SPNC), which has a similar market capitalization (about $1.4 billion) to Volcano. Spectranetics manufactures devices for minimally invasive cardiovascular procedures and its stock is up 34 percent year-to-date.
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