Philips to buy Spectranetics, launch share buyback after Third Point interest
June 29, 2017
Dutch healthtech company Philips has agreed to acquire US-based medical device maker Spectranetics at a €1.9 billion valuation, including debt. At $38.50 per share, the takeover offer represents a 27% premium to the closing stock price of Spectranetics (NASDAQ: SPNC) on Tuesday. Spectranetics is expected to generate sales of around $300 million this year.
In addition to the deal, Philips has announced a new €1.5 billion share buyback programme which will begin next quarter and run for two years. Philips CEO Frans van Houten has denied that he made the decision under pressure from activist investor Third Point and has said he has not had any communication with the hedge fund run by Dan Loeb, per Reuters.
However, the announcement follows reports that Third Point has built up a stake in Philips and is considering an activist campaign. And Philips is not the only European company to attract Third Point's attention. Earlier this week, the hedge fund disclosed a 1.3% stake in Nestlé valued at $3.5 billion.