Philips to acquire medical imaging firm Volcano

Philips has agreed a deal to acquire Volcano, a leader in the field of catheter-based imaging and measurement solutions for cardiovascular applications.

The $1 billion (648.49 million pounds) deal is expected to be completed during the first quarter of 2015 and will help Philips to build upon its own established global leadership position in the image-guided therapy sector.

Volcano achieved a sales total of around $400 million during 2013 and is the only company in the industry with an established portfolio of products for both intravascular ultrasound and fractional flow reserve measurements, plus a nascent peripheral vascular therapeutics business.

The Volcano business and its 1,800 employees will become part of a dedicated new image-guided therapy business group within Philips following the completion of the deal.

Frans van Houten, chief executive officer of Philips, said: "This transaction allows us to provide our customers with an integrated solution to improve procedural outcomes at a decisive stage in the health continuum."

This comes after the firm partnered with Image Stream Medical to expand its integration solutions for image-guided minimally invasive therapies in November 2014.