Health technology conglomerate Royal Philips will acquire Spectranetics, a U.S.-based firm specializing in vascular intervention and lead management tools, according to a June 28 joint announcement from the companies.

Amsterdam-based Philips will pay 1.9 billion euros ($1.7 billion) for Spectranetics, and the deal is expected to close in the third quarter of this year. The move should benefit Philips, as Spectranetics continues to grow and predicts sales to be anywhere from $239 million to $306 million this year.

“Today’s exciting announcement follows a series of bolt-on acquisitions to strengthen our portfolio across the health continuum,” said Frans van Houten, CEO of Royal Philips, in the statement. “This transaction is expected to be revenue growth and profit accretive by 2018, given the projected revenue and productivity synergies. Spectranetics’ highly competitive product range, integrated with our portfolio of interventional imaging systems, devices, software and services will enable clinicians to decide, guide, treat and confirm the appropriate cardiac and peripheral vascular treatment to deliver enhanced care for patients with better outcomes, as well as significantly boost recurring revenue streams for Philips.”

Philips expects the acquisition to help expand and strengthen its Image-Guided Therapy Business Group, which offers interventional imaging systems, devices and software. Through the acquisition, Philips will have access to Spectranetics’ full device portfolio, which includes a range of laser atherectomy catheters, the AngioSculpt scoring balloon, and the Stellarex drug-coated balloon, among others.

When the deal closes, Spectranetics’ 900 employees will become part of the Philips’ Image-Guided Therapy Business Group, which is expected to top 1 billion euros in sales by 2020 as a result of the merger.

“We are pleased to announce this agreement with Philips, which will deliver significant value to our shareholders,” said Scott Drake, president and CEO of Spectranetics, in a statement. “Combining Philips’ innovations in image-guided therapy with Spectranetics’ portfolio and expertise in the therapeutic device space will create exciting opportunities and allow us to accelerate growth. We look forward to a smooth transition.”