Volcano Corp., a maker of products designed to diagnose and treat heart disease, said Dec. 10 that it signed an agreement to acquire CardioSpectra, a privately held company based in San Antonio, for a potential $63 million.
Under terms of the agreement, Volcano will acquire outstanding equity interests in CardioSpectra for $25 million in cash, plus additional payments of up to $38 million, given it meets certain predetermined benchmarks.
Volcano makes products that allow cardiologists to get a clearer picture of what is happening inside the coronary arteries, where plaque can build up and cause heart attacks. Its colorized technology has proven useful in surgeries that require placement of drug-coated stents. Research has shown that more than half the time stents are improperly placed.
CardioSpectra makes imaging systems designed to detect light reflected from tissues, which produce high-resolution 2-D and 3-D images. Its products have yet to gain regulatory approvals for human use, although the company says it expects to file for approvals next year.
Employees of CardioSpectra will be offered employment with Volcano following the close of the merger, which is expected to happen before the end of the year.
Volcano, based in Rancho Cordova with executive offices in Carmel Valley, employs about 600 people across the country. The majority of its research and development and manufacturing operations are conducted in Rancho Cordova, although it also maintains a small R & D; presence locally.
Shares of Volcano, traded as VOLC on Nasdaq, closed down 13 cents, or less than 1 percent, to $14.87 on Dec. 10.
, Heather Chambers