Volcano, a provider of intravascular ultrasound (IVUS) and functional measurement products designed for the diagnosis and treatment of vascular and structural heart disease, has reached a definitive agreement to acquire CardioSpectra, a developer of optical coherence tomography (OCT) technology.
Under terms of the agreement, Volcano will pay $25 million in cash at closing, which the company expects to occur by the year’s end. Volcano will make additional payments on the achievements of certain product development, regulatory and revenue milestones, which may be made in cash or stock or a combination of both at its discretion, according to the San Diego-based Volcano.
The San Antonio-based CardioSpectra’s core product line is based on its OCT technology licensed from the University of Texas and Thomas Milner, MD, its co-founder.
Scott Huennekens, president and CEO of Volcano, said its “long-term goal is to integrate this OCT functionality directly into our s5i integrated imaging suite of products—offering hospitals and physicians a complete, multi-functional capability that seamlessly provides IVUS, functional measurement and OCT all in one system.”
CardioSpectra's offering consists of a console with software, a pull-back device and disposable catheters, but the system and accessories are not approved for human use at this time, according to Volcano.
Volcano said it intends to file for U.S. and international approvals during 2008. CardioSpectra holds several U.S. patents on its technology with other patents pending.