Volcano Corp., the medical-device maker born in the Sacramento area but moving scores of jobs to Costa Rica, agreed to a $1.2 billion takeover Wednesday under pressure from unhappy shareholders.
Now based in San Diego, Volcano said it is being sold to Dutch electronics conglomerate Philips for $1.2 billion, or $18 a share. The announcement sent Volcano’s stock price up 55 percent on the day, closing at $17.84 on the Nasdaq market.
The deal has been approved by Volcano’s board of directors but requires shareholder approval.
A maker of catheters and equipment for treating heart disease, Volcano had been criticized by shareholders in the past year for not cutting expenses quickly or deeply enough. The company lost $18.6 million in the first nine months of this year on revenue of $294 million.
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Part of Volcano’s response to shareholders has been to relocate its Rancho Cordova manufacturing operations and several hundred jobs to Costa Rica, where it opened a plant in 2012. The job transfer began in July 2013 and another 170 jobs were scheduled to move earlier this week, according to filings with the state Employment Development Department.
By next July, the company has said it expects to cease all manufacturing in Rancho Cordova. City officials have said they’ve been told some research and development jobs would remain in Rancho Cordova.
It wasn’t clear what effect the Philips sale would have on the Rancho Cordova operations.
Volcano was founded in Rancho Cordova in 2000 but moved to San Diego in 2008. At one time, it employed more than 500 workers in Rancho Cordova.
Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.