Philips to Acquire Adac Laboratories for $426 Million

Royal Philips Electronics (Amsterdam, The Netherlands) has agreed to acquire Adac Laboratories (Milpitas, CA, USA) for around US$426 million. The acquisition will enable Philips Medical Systems (Best, The Netherlands) to offer healthcare providers worldwide a broader range of systems to diagnose and treat such diseases as cardiovascular disease and cancer. Adac's revenues for the fiscal year 2000, ended October 1, were $324.4 million.

Adac Laboratories is a leading supplier of nuclear medicine imaging equipment and radiation therapy planning systems. The nuclear medicine systems are used primarily in the diagnosis of heart disease and cancer. Adac is also a growing presence in the positron emission tomography (PET) imaging market. Adac's line will complement and broaden the Philips line of products, which include catheterization labs, magnetic resonance (MR), computed tomography (CT), x-ray, and ultrasound systems as well as information technology addressing the radiology, general imaging, and surgical and cardiovascular markets.

"In cardiology, one of our focus areas, this acquisition will significantly complement our HeartCare program since nuclear medicine is one of the important tools clinicians rely on to assess cardiovascular disease,” said Hans Barella, president and CEO of Philips Medical Systems.



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