May 27, 2014 Updated: May 27, 2014 at 4:32 pm
Spectranetics Corp. announced Tuesday the Colorado Springs-based medical laser manufacturer will next month acquire a California company that manufactures angioplasty balloons in a $230 million deal that is the biggest acquisition in its 30-year history.
Spectranetics will acquire Fremont, Calif.-based AngioScore Inc., a privately held firm that develops, manufactures and sells cardiovascular specialty balloons, in a deal evenly split between cash and stock, though the company said it plans to finance the entire purchase price by issuing $200 million Wednesday in 20-year bonds that could be converted into stock. The transaction is expected to be completed by June 30, when AngioScore will become a subsidiary of Spectranetics.
"The attractiveness of this deal compelled us to act," Spectranetics CEO Scott Drake said in a conference call Tuesday with stock analysts, investors and others. "This combination makes perfect sense in terms of strategic fit, technology, scale and reach."
AngioScore was started in 2003 by a California cardiologist and a veteran of the medical device industry and generated $55 million in revenue last year, growing at an annual rate of 14 percent during the past three years and 20 percent last year. The company employs 170.
The combined company had revenue totaling $213.5 million and generated operating earnings of $10.1 million. Spectranetics said in a press release announcing the deal that it expects the acquisition to add to operating earnings next year and save up to $10 million in annual operating costs.
"Simply put, we are 'better together,'" AngioScore CEO Thomas Trotter said the release. "We believe that this combination provides an opprotunity to build a remarkable future while delivering life-impacting technologies to physicians and patients."