August 8, 2019 / 6:47 AM / a month ago

Germany's Siemens Healthineers to buy U.S. firm Corindus for $1.1 billion

MUNICH (Reuters) - Siemens Healthineers has agreed to buy Corindus Vascular Robotics for $1.1 billion in the biggest acquisition since the Siemens subsidiary listed on the stock market last year.

A staffer works on a magnetic resonance imaging machine at a production line of Siemens Healthineers in Shenzhen, China May 25, 2018. REUTERS/Bobby Yip/File Photo

Healthineers is paying $4.28 per share for Massachusetts-based Corindus, which develops robotic systems for minimally invasive vascular therapy procedures, a 77% premium to the U.S. company’s closing price on Wednesday.

Systems produced by Corindus, which has approximately 100 employees, allow doctors to guide catheters and stent implants with controlling modules.

Corindus made a loss of $35 million last year on revenue of $10.8 million. But Jochen Schmitz, Healthineers’ finance chief, told analysts on Thursday he expected the unit to post a profit in 2023.

Corindus’ board has approved the deal, Corindus said in a statement, but the deal is still subject to shareholder agreement.

“We believe the transaction will deliver immediate, compelling and certain value to all Corindus stockholders,” Corindus Chief Executive Mark Toland said.

Rival Philips is the second-largest shareholder in Corindus with a 12.8% stake, according to Refinitiv data. Healthineers’ Schmitz said he doesn’t expect a counter bid from the Dutch company.

A Philips spokesman said the company was reviewing the announcement and wouldn’t comment further.

In 2015, Philips bought U.S. medical equipment maker Volcano, specialized in equipment for minimally invasive surgery, for $1.2 billion, strengthening its position in image-guided therapies.

Siemens and Corindus said the deal is expected to close by the end of the year.

Reporting by Alexander Huebner in Munich; Additional reporting by Bart Meijer in Amsterdam Writing by Tom Sims; Editing by Michelle Martin and David Holmes

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