December 30, 2008 - Volcano Corp. will acquire Axsun Technologies Inc., a developer and manufacturer of lasers and optical engines used in medical Optical Coherence Tomography (OCT) imaging systems and advanced photonic components, as part of Volcano’s strategy to establish its position in invasive imaging.
Volcano will pay approximately $21.5 million in cash at closing, which is expected to occur this week. Axsun, which recorded revenues from continuing operations in excess of $18 million in calendar 2007, will operate as a wholly-owned subsidiary of Volcano.
Axsun currently has development partnerships with companies serving the cardiology and dental markets and expects the launch the 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 advanced tunable laser and optical engine technology in the development of certain new OCT imaging systems. Axsun's technology and laser components reportedly allow for dramatic imaging performance improvements in equipment form factors as small as 1/1000th the size of current laser components at very low manufacturing costs.
Volcano hopes the Axsun acquisition will accelerate its OCT product development efforts and provide sustainable competitive advantages in the invasive imaging arena.
The company said that it expects this 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. The company 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.