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Philips to Complete Volcano Acquisition 1st Quarter 2015

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Royal Philips and Volcano Corporation, a global leader in catheter-based imaging and measurement solutions for cardiovascular applications, have announced that they entered into a definitive merger agreement.

Pursuant to the agreement, Philips will commence a tender offer to acquire all of the issued and outstanding shares of Volcano for USD 18.00 per share, or a total equity purchase price of USD 1 billion (approx. EUR 800 million), to be paid in cash upon completion.

The board of directors of Volcano has unanimously approved the transaction and recommends the offer to its shareholders.

The transaction is expected to close in the first quarter of 2015.

In the last few years, Philips has created a leading image-guided therapy business through strategic investments in R&D, partnerships and technology licenses.

Today, Philips has a rich portfolio of interventional imaging equipment, navigation tools, and services, and a sizeable global customer base, including each of the top 50 U.S. Heart Surgery and Cardiology hospitals.

One in every three interventional X-ray systems sold globally is a Philips system.

These systems provide the visual maps that allow the clinician to guide thin, tube-shaped instruments called catheters through the body, to the area of interest and perform the minimally invasive treatment.

In image-guided treatments of the heart and blood vessels, there is an increasing trend to use advanced catheters that are capable of producing ultrasound images of the interior of blood vessels (intravascular ultrasound or IVUS) or perform blood flow measurements (fractional flow reserve or FFR).

There is a growing body of clinical evidence that the use of such technologies in conjunction with interventional X-ray helps improve procedural outcomes.

With 2013 sales of approximately USD 400 million, San Diego, California-based Volcano is a leader in catheter–based imaging and measurements for minimally invasive diagnostics and treatment of coronary artery disease and peripheral vascular disease.

Volcano is the only company in the industry with a leading position in both IVUS imaging and FFR measurements.

In addition, the company possesses the broadest product portfolio around these two technologies, a leading IP position and a nascent peripheral vascular therapeutics business that targets a segment with a double-digit growth rate.

The combination of two industry leaders will create new sources of recurring revenue streams and increase sales growth for Philips in the EUR 4 billion image-guided therapy market opportunity.

Sales growth will be accelerated through Volcano’s close customer relationships associated with its disposable products and channel synergies that will create cross-selling opportunities between both companies’ existing customer bases.

Also, the combination of Volcano’s proven clinical development and commercialization capabilities with Philips’ next generation of imaging and measurement technologies, will allow Philips to introduce new solutions in higher growth segments such as the minimally invasive treatment of heart rhythm disorders and structural heart diseases.

These are promising segments growing at double-digit rates.

“The agreement to acquire Volcano significantly advances our strategy to become the leading systems integrator in image-guided therapies,” said Frans van Houten, Chief Executive Officer of Royal Philips.

”Volcano’s impressive and unique product portfolio is highly complementary to our strong offering in live image-guidance solutions, creating an opportunity to accelerate the revenue growth for our image-guided therapy business to a high single-digit rate by 2017.

“Our combined sales forces will be able to capture immediate cross selling opportunities, while our joint R&D teams will be able to develop new solutions to address significant unmet needs in the minimally invasive treatment of cardiovascular diseases,” Van Houten said.

Van Houten added: “Image-guided therapies provide significant benefits for healthcare systems and patients, including reduced patient trauma, shorter recovery times and hospital stays, and lower costs. As a result, our clinical partners and customers are asking for a tighter integration of imaging and measurement technologies to enable such therapies. This transaction allows us to provide our customers with an integrated solution to improve procedural outcomes at a decisive stage in the health continuum.”

“I am very excited that Volcano will become part of Philips and join forces with its leading image guided therapy business,” said Scott Huennekens, Volcano President and Chief Executive Officer. “

“This transaction will be beneficial for our shareholders, customers, partners and employees. There is a large and growing global market opportunity for image-guided therapies, and as part of Philips, we gain the scale and resources needed to accelerate our goals of improving patient outcomes on a global basis, lowering cost and delivering innovative diagnostics and therapies in the coronary and peripheral markets.

“In addition, our shared expertise in the image-guided therapy market will allow us to further globalize our leading IVUS and FFR product offerings and enter new product areas. We look forward to working closely with Philips and ensuring a smooth transition and closing,” Scott.

Upon completion of the transaction, the Volcano business and its 1,800 employees will be part of a dedicated, new image-guided therapy business group within Philips, which will be led by Philips executive Bert van Meurs, an experienced leader in the health care industry with a proven track record in the image-guided therapy market.

Financials
The acquisition will create a strategically and financially compelling combination that will provide higher growth, additional operating leverage through more productive sales operations, and enhance commercialization opportunities in new, adjacent segments.

Philips will drive operational performance improvements through cost synergies and the implementation of proven productivity improvement methodologies such as Lean.

As a result, the transaction is expected to be accretive to Philips’ reported earnings per share by 2017, and Philips targets an EBITA margin for its image-guided therapy business group of around 20% by 2017.

The transaction is structured as a cash tender offer by Philips for all of the issued and outstanding shares of Volcano, to be followed by a merger in which each share of Volcano not tendered in the tender offer will be converted into the USD 18.00 per share price paid in the tender offer.

Pursuant to the merger agreement, the transaction is subject to customary closing conditions, including certain regulatory clearances in the US and in certain non-US jurisdictions.

The tender offer is not subject to any financing conditions.

Philips intends to finance the acquisition through a combination of cash on hand and the issuance of debt.‎


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FG Seeks Stakeholders’ Collaboration to Bridge Digital Gap

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The Federal Government has called for collaboration among stakeholders to bridge the digital divide in Nigeria, as it launches a series of flagship projects aimed at boosting digital inclusion.

According to Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, the government is committed to ensuring that all Nigerians have access to digital services, regardless of their location or socio-economic status.

Speaking at an industry-focused stakeholders’ engagement session in Lagos, Tijani said the projects, which include Project BRIDGE, Project 774 and the Universal Access Project, were designed to extend digital connectivity to underserved and unserved communities, promote digital literacy and drive economic growth.

Themed, “Fostering Connectivity in Unserved and Underserved Communities: Collaborating for Sustainable Growth,” the event organized by the Universal Service Provision Fund (USPF) of the Nigerian Communications Commission (NCC), in-collaboration with the International Telecommunication Union, (ITU) and supported by the UK Foreign, Commonwealth & Development Office, brought together chief executives of telecoms companies, development partners and trade associations, among other notable industry players.

The minister noted that though Nigeria has made significant strides in expanding connectivity and strengthening its digital technology infrastructure, millions of Nigerians were yet to have access to reliable connectivity.

He said: “Over the last 25 years, Nigeria has made significant strides in expanding connectivity and strengthening our digital technology infrastructure. In recent years, broadband penetration has been growing significantly, bringing more millions of Nigerians online and enabling new opportunities for innovation, entrepreneurship and digital inclusion.

“Today, however, there are still millions of Nigerians on the fringes of digital transformation, who are yet to have access to reliable connectivity. Many communities, particularly rural areas, face significant barriers, including inadequate infrastructure and limited digital literacy.”

These gaps, Tijani added, not only hinder personal and business growth but also limit the full potential of Nigeria’s digital economy. He stressed that the Universal Service Provision Fund has been a critical instrument in the FG’s mission to extend connectivity to these communities, supporting infrastructure expansion, fostering local innovation and driving inclusive policies.

According to him, the federal government, through the Ministry of Communications, Innovation and Digital Economy, is also actively in driving transformative projects aimed at unlocking digital opportunities for millions of Nigerians.

He listed some of the government’s flagship initiatives to close the divide to include, Project BRIDGE, Project 774,

Universal Access Project, National Broadband Alliance of Nigeria (NBAN) and the 3 Million Technical Talent.

The minister further explained that Project BRIDGE, a 90,000km fibre optic expansion, was designed to significantly improve broadband penetration across Nigeria by extending fiber optic infrastructure to all regions; while Project 774 ensures that every local government secretariat in Nigeria benefits from high-speed connecivity, fostering grassroots digital transformation.

He described the Universal Access Project as a game-changing initiative targeted at connecting over 20 million Nigerians, who currently have no access to digital services.

“The National Broadband Alliance of Nigeria (NBAN) is our multi-stakeholder’s effort to drive collaboration across government and private sector to drive universal high quality broadband access. The 3 Million Technical Talent programme ( 3MTT) is strengthening our talent pipeline to deliver a workforce to improve the digital ecosystem.

“These projects are not just focussed on infrastructure; but also about enabling businesses, empowering individuals and unlocking the full economic potential of Nigeria’s digital landscape as we work towards a $1trillion economy.

“However, bridging this digital divide is not a task for the government alone. Sustainable and impactful progress require strong partnerships across the public and private sectors, development agencies, civil society and local communities.

“To ensure effective collaboration, we must focus on four key pillars, including community engagement, leveraging existing infrastructure, capacity building and sustainable solutions.

“We stand at a defining moment in Nigeria’s digital transformation. We have the vision, the policy framework and the will to connect every Nigerian to the digital economy. But, we need your partnership to explore alternative innovative ways to deliver on all elements of our plans.

“There is a clear role for everyone, including government at all levels, private sector, development partners and local communities in this journey,” the minister stated.

Earlier in his address, Dr. Aminu Maida, the Executive Vice Chairman of the NCC, said the theme of the programme reflected collective commitment to ensuring equitable access to telecommunications services for all Nigerians, especially those in unserved and underserved communities.

“Today’s meeting is particularly aimed at bringing key industry stakeholders together to provide valuable insights on strategies that can be adopted to enhance USPF interventions and serve as a feedback mechanism to build partnerships for Nigeria’s digital future.

“It goes without saying that the USPF acknowledges the crucial role of collaboration, strategic partnerships and complementary efforts to achieve sustainable development,” Maida stated.

He reiterated that the NCC, through the USPF, has been at the forefront of initiatives aimed at providing universal access and universal service. According to him, these efforts align with broader national and global goals, including bridging the digital divide, promoting universal access, fostering economic growth and social inclusion, and achieving Sustainable Development Goals “SDGs 4” (Quality Education) and 9 (Industry, Innovation and Infrastructure).

“Without doubt, to achieve digital inclusion, government agencies, mobile network operators, infrastructure providers, equipment manufacturers, development partners and telecom trade groups must work closely together.

It is for this reason that a multistakeholders’ approach is essential to explore innovative financing models to attract investment in rural telecommunications, leverage emerging technologies and alternative power solutions for sustainable connectivity and promote policies that incentivize collaborative participation in connectivity projects.

“I want to use this platform today, to urge all stakeholders to take decisive steps toward strengthening partnerships.

Let us harness our collective expertise, resources and innovative capabilities to build a resilient and sustainable telecommunication infrastructure that will empower millions of Nigerians.

We must remember that collaboration remains the cornerstone of sustainable development in this sector,” Maida submitted.


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AMCON Vows to Recover N455bn Debt from Arik Air, Affiliates

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L-R: Chief Financial Officer, Aero Contractors Mr. Charles Grant; Head, Corporate Communications Department of Asset Management Corporation of Nigeria (AMCON) Mr. Jude Chiedozie Nwauzor; Hauwau Ibrahim of Corporate Communications Department; Head of Litigations, Mr. Norbert Enenmoh; Head of Legal Department, Mr. Albert Nwanozie; Acting Company Secretary Mrs Oyinlola Adebayo; Mr Issa Usman of Litigation Unit; and the Technical Assistant to the MD/CEO of AMCON Mr Mohammed Yusuf at a media luncheon with Judicial Editors at Marriot Hotel in Lagos…at the weekend
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Asset Management Corporation of Nigeria (AMCON) has reaffirmed its commitment to recovering over N455 billion in debts owed by Arik Air Limited (in receivership) and its affiliated companies.

 

L-R: Chief Financial Officer, Aero Contractors Mr. Charles Grant; Head, Corporate Communications Department of Asset Management Corporation of Nigeria (AMCON) Mr. Jude Chiedozie Nwauzor; Hauwau Ibrahim of Corporate Communications Department; Head of Litigations, Mr. Norbert Enenmoh; Head of Legal Department, Mr. Albert Nwanozie; Acting Company Secretary Mrs Oyinlola Adebayo; Mr Issa Usman of Litigation Unit; and the Technical Assistant to the MD/CEO of AMCON Mr Mohammed Yusuf at a media luncheon with Judicial Editors at Marriot Hotel in Lagos…at the weekend

Jude Nwauzor, Head of Corporate Communications at AMCON, disclosed this during a media briefing in Lagos, stating that Sir Johnson Arumemi-Ikhide, promoter of Arik Air, Ojemai Investment Limited, and Rockson Engineering Nigeria, has been uncooperative in settling the debts.

Nwauzor described the refusal to repay the loans as a “disservice to the commonwealth and the Nigerian people,” adding that AMCON remains undeterred by alleged smear campaigns against the agency.

“These debts must be recovered one way or the other. The leadership of AMCON, under Mr. Gbenga Alade, will not deviate from its mandate to recover the huge debt owed to the Corporation by recalcitrant obligors,” he said.

According to AMCON, the debts, transferred from various banks due to non-performance, include N227.6 billion owed by Arik Air, N163.5 billion by Rockson Engineering, and N14 billion by Ojemai Investment.

Nwauzor refuted claims by Arumemi-Ikhide that the loans were performing and that the receivership was premature, describing such narratives as misleading.

“If the loan was performing, why was it sold and restructured? Why did he agree to the restructuring if there was no default? The simple answer is that he did not fulfill the agreed terms,” Nwauzor added.

Arik Air was taken over by the Federal Government through AMCON in February 2017 due to its debt profile exceeding N300 billion. Despite legal challenges, the receivership management, led by Captain Roy Ilegbodu, has continued to operate the airline effectively.

AMCON reiterated its resolve to recover the debts in line with its mandate, emphasizing the importance of accountability and transparency in the process.


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Renaissance Energy Completes Acquisition of SPDC

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Renaissance Africa Energy has completed the “acquisition of the entire (100%)” equity holding in Shell Petroleum Development Company of Nigeria (SPDC).

Renaissance Energy Completes Acquisition of SPDC

This is according to a statement on Thursday by the spokesman of Renaissance Africa Energy Holdings Tony Okonedo who said the acquisition was completed on the same day.

“This follows the signing of a sale and purchase agreement with Shell in January 2024, and obtaining all regulatory approvals required for the transaction. Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited,” the statement added.

“We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be ‘Africa’s leading oil and gas company, enabling energy security and industrialisation in a sustainable manner.’

We and our shareholder companies are therefore pleased that the Federal Government has given the green light for this milestone acquisition in line with the provisions of the Petroleum Industry Act,” said Tony Attah, managing director/CEO of Renaissance.

He added: “We extend our appreciation to the Honourable Minister of Petroleum Resources, the CEO of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the GCEO of Nigeria National Petroleum Company Limited (NNPCL) for their foresight and belief, paving the way for the rapid development of Nigeria’s vast oil and gas resources as a strategic accelerator for the country’s industrial development”.

 

 


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