Dutch electronics company Royal Philips NV on Wednesday said it is buying U.S. medical-imaging company Volcano Corp. for $1 billion to boost its image-guided therapy offering.

San Diego, Calif.-based Volcano provides catheter-based imaging and measurement solutions for cardiovascular applications, and reported sales last year of about $400 million.

Including debt, the Philips said the total transaction value was $1.2 billion.

Philips in recent years has sought to expand in the image-therapy market—which it believes is worth roughly €4 billion ($4.99 billion) a year—and said Volcano was the market leader in making flexible tubes that can produce ultrasound images of blood vessels as well as consoles to measure blood flow. Its products aim to treat cardiovascular diseases in less invasive ways.

Philips Chief Executive Frans van Houten said Volcano’s products were “highly complementary” to its existing offering and that the acquisition would allow it to boost revenue growth in its image-guided therapy business.