Royal Philips has entered into a definitive merger agreement with Spectranetics to buy the company for $2.15 billion. Announced on Wednesday, the deal is expected to strengthen Philips’ image-guided therapy business group. Spectranetics has a strong portfolio for vascular intervention and lead management for the minimally invasive removal of implanted pacemaker and implantable cardioverter defibrillator leads. The company is experiencing double-digit growth and has projected this year’s sales to hit between $293 million and $306 million.

“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,” said Frans van Houten, CEO of Royal Philips in a company press release.

The Spectranetics portfolio of products includes laser atherectomy catheters that treat blocked coronary and peripheral arteries, the AngioSculpt scoring balloon, which is also used to treat such blockages, and the CE-marked Stellarex drug-coated balloon (currently under FDA review).

The combined Spectranetics and Philips’ image-guided therapy devices business is expected to reach $1 billion by 2020. The transaction is anticipated to close in the third quarter of 2017. Once the deal is complete Spectranetics and its 900+ employees will become part of Philips’ image-guided therapy business group.