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Philips to Buy Cardiac Firm Spectranetics for $1.7 Billion

  • Dutch company also plans to buy back $1.7 billion of shares
  • CEO says he has no knowledge about any Third Point investments
Updated on

Royal Philips NV’s $1.7 billion deal to buy Spectranetics Corp., a U.S. maker of devices to treat cardiac disease, shows the Dutch company is moving more aggressively to bolster its growing health-care business.

Philips will offer $38.50 a share in cash for the Colorado Springs-based company, according to a statement Wednesday. The price is 27 percent above Spectranetics’ closing level on Tuesday. Philips also will buy back as much as 1.5 billion euros ($1.7 billion) of its own stock to offset share dilution from an employee incentive program.