Volcano Strikes Deal to Buy Medical Imaging Component Maker

Volcano Corp. has agreed to buy Axsun Technologies, Inc., a maker of lasers and optical engines used in cardiovascular disease diagnostics, for $21.5 million in cash.

Volcano makes equipment for diagnosing and treating coronary and peripheral artery disease and is based in San Diego, CA. Its major manufacturing, research and product development offices are in Rancho Cordova, CA. 

Axsun, which is based in Boston, will operate as a Volcano subsidiary. It has development partnerships with companies serving the cardiology and dental markets, and expects to launch the first medical imaging systems using its optical coherence tomography (OCT) technology in the first half of next year. Volcano plans to use Axsun’s technology in the development of new OCT imaging systems.

Axsun also makes light-based components and subsystems for industrial applications and telecommunications networks.

“Our capability of precise imaging is delivered with a level of performance and on a scale of miniaturization and at a cost that should enable significant expansion of varied market opportunities in a number of medical specialties,” Dale Flanders, president and CEO of Axsun, said.

Volcano said it expects the transaction will have no effect on its own earnings per share next year. Following the transaction, it will have more
than $145 million in cash and no debt, according to the company.