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news.Volcano Corporation, a developer and manufacturer of diagnostic products, has entered into a definitive agreement to acquire Axsun Technologies, a maker of lasers and optical engines used in medical Optical Coherence Tomography imaging systems and advanced photonic components and subsystems used in other industrial applications.
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Under terms of the acquisition agreement, Volcano will pay approximately $21.5 million in cash at closing, which is expected to occur in late December 2008. Axsun will operate as a wholly-owned subsidiary of Volcano.
The company has said that it expects this transaction to be neutral to consolidated earnings per share in fiscal 2009 and that following completion of the transaction it will have more than $145 million in cash, with no debt.
Volcano said that it plans to utilize new integrated versions of Axsun’s advanced tunable laser and optical engine technology in the development of certain new OCT imaging systems.
Scott Huennekens, president and CEO of Volcano, said: “Axsun is another complementary and important transaction for Volcano as it provides us proprietary OCT technology that we believe will both accelerate our Optical Coherence Tomography (OCT) product development efforts and provide us significant and sustainable competitive advantages in the invasive imaging arena.
“We believe OCT technology will extend Volcano’s reach to clinical indications and research opportunities that represent sizeable market opportunities that are beyond those served by our current offerings.”