Volcano to buy OCT developer for $21.5M
Under terms of the acquisition agreement, Volcano said it will pay approximately $21.5 million in cash at closing, and Axsun will operate as a wholly owned subsidiary of Volcano.
Axsun of Billerica, Mass., currently has development partnerships with companies serving the cardiology and dental markets, and expects the launch of its first medical imaging systems utilizing its technology during the first half of 2009. Volcano said it plans to utilize new integrated versions of Axsun's tunable laser and optical engine technology in the development of new OCT imaging systems. The company has more than 90 U.S. patents issued, with another 40 pending, and has approximately 85 employees. Axsun recorded revenues from continuing operations in excess of $18 million in calendar 2007, according to the San Diego-based Volcano.
The company said that it expects the 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 also said it will provide additional details on the financial impact of the transaction when it provides 2009 guidance during its fourth quarter earnings conference call in mid-February.
Axsun's technology has the potential to expand OCT applications into a number of new platforms serving markets in the healthcare sector, including peripheral vascular, neurovascular, cancer and ophthalmology, according to Scott Huennekens, president and CEO of Volcano.