The Spectranetics Corporation has announced that it has entered into a definitive merger agreement under which Spectranetics will acquire AngioScore, a leading developer, manufacturer and marketer of cardiovascular, specialty balloons, for US$230 million in up-front consideration, along with additional contingent commercial and regulatory milestone payments.
The transaction will combine two successful, double-digit growth companies committed to solving complex cardiovascular challenges in both the peripheral and coronary markets and is expected to:
- Expand Spectranetics’ addressable markets
- Significantly add to the life- and limb-saving solutions Spectranetics can offer physicians and their patients
- Broaden the product pipeline, including the addition of a proprietary drug-coated scoring balloon platform
- Enhance and leverage Spectranetics’ strong sales and marketing capabilities
- Add to Spectranetics’ topline growth
- Drive significant operating efficiencies and savings
Subject to customary closing conditions, the transaction is expected to close on or near June 30, 2014, at which point AngioScore will become a wholly owned subsidiary of Spectranetics. The up-front consideration consists of US$115 million in cash and US$115 million of Spectranetics common stock, although, as permitted by the merger agreement, Spectranetics intends to fund the entire US$230 million up-front amount in cash with proceeds from a proposed convertible note offering. Piper Jaffray & Company acted as exclusive financial advisor to The Spectranetics Corporation and Faegre Baker Daniels LLP is serving as Spectranetics’ legal counsel.
“We have consistently discussed our strict criteria in evaluating partnering opportunities,” says Scott Drake, president and chief executive officer of Spectranetics. “AngioScore meets our criteria with an exceptional strategic fit, leverageable call points, differentiated technology and clear operating efficiencies. As a combined entity, we expect to have a meaningfully expanded market opportunity and a compelling product portfolio.”
AngioScore, based in Fremont, California, USA, 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. AngioScore’s product and distribution platforms diversify Spectranetics’ portfolio while expanding physicians’ options to treat critical limb ischemia, in-stent restenosis, calcified lesions and chronic total occlusions.
“Simply put, we are ‘better together’,” says AngioScore president and chief executive officer Thomas R Trotter. “We believe that this combination provides an opportunity to build a remarkable future while delivering life-impacting technologies to physicians and patients. In Spectranetics, we find a like-minded partner that shares our values, our commitment to improving patients’ lives, and equally high standards for operational excellence and quality.”