Royal Philips NV  (PHG) - Get Report said Wednesday that it will buy medical devices maker Spectranetics Corporation  (SPNC) in a deal that carries an enterprise value of around €1.9 billion.

Philips will pay $38.50 per share for Colorado Springs, Co.-based Spectranetics, a 26.6% premium to the $30.40 closing price the shares reached yesterday in New York that gave the group a market capitalisation of $1.326 billion. The deal is expected to close in the third quarter of this year, Philips said, and has been approved and recommended by the Spectranetics board.

In a note on Wednesday, Canaccord Genuity Inc. analyst Jason Mills said the deal marks a 7.2 times enterprise value to sales multiple relative to Canaccord's 2017 revenue estimate for Spectranetics.

"By contrast, med-tech companies growing at a forward 2-year CAGR of at least 15% are trading at 7.4x 2017E," wrote Mills, who has a buy rating on Spectranetics' stock. The forward two-year CAGR estimate for Spectranetics in Canaccord's model is 16%.

Mills views Stellarex as the coveted asset in the transaction. The Stellarex drug-coated balloon is a therapeutic device for the treatment of peripheral artery disease. It is Conformite Europeene (CE)-marked and under review by the Food and Drug Administration for premarket approval in the U.S.

Shares of Spectranetics were trading at $38.38, up 26.2%, on Wednesday. Philips' American depository receipts were changing hands at $36.33, down 0.8%

For Philips, the acquisition is expected be revenue growth and profit accretive by 2018, said CEO Frans van Houten in a statement.

"Spectranetics' highly competitive product range, integrated with our portfolio of interventional imaging systems, devices, software and services will enable clinicians to decide, guide, treat and confirm the appropriate cardiac and peripheral vascular treatment to deliver enhanced care for patients with better outcomes, as well as significantly boost recurring revenue streams for Philips," van Houten said.

Spectranetics is expected to generate around $300 in sales this year, Philips said, and described the company as a "leader in vascular intervention to treat coronary and peripheral artery disease, and in lead management for the minimally invasive removal of implanted pacemaker and implantable cardioverter defibrillator (ICD) leads."

When the deal closes, Spectranetics will become part of Philips' image-guided therapy unit.