News Column

Big deal: Colorado Springs company completes major acquisition of California firm

June 30, 2014

By Wayne Heilman, The Gazette (Colorado Springs, Colo.)



June 30--Spectranetics Corp. completed the biggest acquisition in its 30-year history on Monday, paying $230 million for AngioScore Inc., a Fremont, Calif.-based manufacturer of specialty angioplasty balloons.

Colorado Springs-based Spectranetics agreed last month to buy AngioScore and issued $230 million in 20-year bonds earlier this month to finance the deal. The bonds carry a 2.625 percent interest rate and can be converted into stock at the rate of 31.902 shares for every $1,000 in principal amount.

The transaction also includes up to $75 million in additional payments based on 2015-17 sales increases, and on winning U.S. and European approval of new products by the end of 2016.

"We are very excited to complete this important transaction," Spectranetics CEO Scott Drake said in a press release Monday announcing the completion of the acquisition. "AngioScore meets our criteria with an exceptional strategic fit, leverageable call points (common customers between the two companies), differentiated technology and clear operating efficiencies. With AngioScore now part of our company, we have a meaningfully expanded market opportunity and a compelling product portfolio."

Privately held AngioScore was started in 2003 by a California cardiologist and veteran of the medical device industry. The company generated $55 million in revenue last year, and has grown at an annual rate of 14 percent during the past three years, including 20 percent last year. The company employs 170 and will continue to operate in California as a separate subsidiary of Spectranetics.

The two companies had combined revenue of $213.5 million and generated operating earnings of $10.1 million.

Spectranetifcs said in a news release when the deal was announced May 27 that it expects the acquisition to add to operating earnings next year and save up to $10 million in annual operating costs.

Spectranetics was started in Colorado Springs in 1984. Before the acquisition, it had 600 employees with annual revenue totaling $158.8 million last year.

The company's lasers are used to clear blockages in both coronary and leg arteries, and to remove defective pacemaker leads.

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Contact Wayne Heilman: 636-0234

Twitter @wayneheilman

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(c)2014 The Gazette (Colorado Springs, Colo.)

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Source: Gazette (Colorado Springs, CO)


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