Philips will conduct a tender offer to acquire all of the issued and outstanding shares of catheter-based imaging and measurement solutions provider for $18.00 per share.

Volcano provides catheter-based imaging and measurements for minimally invasive diagnostics and treatment of coronary artery disease and peripheral vascular disease.

Royal Philips CEO Frans van Houten said: "The agreement to acquire Volcano significantly advances our strategy to become the leading systems integrator in image-guided therapies.

"Volcano’s impressive and unique product portfolio is highly complementary to our strong offering in live image-guidance solutions, creating an opportunity to accelerate the revenue growth for our image-guided therapy business to a high single-digit rate by 2017."

"Image-guided therapies provide significant benefits for healthcare systems and patients, including reduced patient trauma, shorter recovery times and hospital stays, and lower costs."

According to Philips, Volcano is the only firm in the industry with a leading position in both IVUS imaging and FFR measurements and reported sales of around $400m in 2013.

The Volcano business and its 1,800 employees will be part of a new image-guided therapy business group within Philips, upon completion of the transaction.

The deal is expected to be completed in the first quarter of 2015.

Image: Royal Philips to acquire catheter-based imaging and measurement solutions provider Volcano. Photo: courtesy of Koninklijke Philips N.V.