Philips to Acquire Agilent's Medical Unit for $1.7 Billion

Royal Philips Electronics (Amsterdam, The Netherlands) has agreed to acquire the Healthcare Solutions Group (HSG) of Agilent Technologies for US$1.7 billion. The acquisition will expand the scope of Philips Medical Systems (PMS) and enable the company to enter new, high-growth market segments that include automatic external defibrillators (AEDs) and home care technology with remote diagnostics. With annual sales of $1.5 billion, HSG has strong positions in the markets it serves.

The HSG portfolio will complement the PMS line, adding patient monitoring devices, ultrasound imaging, and AEDs and other resuscitation aids. HSG also markets information management and other services and supplies.

Agilent Technologies was created in 1999 as a spinoff of Hewlett Packard Corp. and consists of two business groups, HSG and a test and measurement group. In August of this year, Agilent announced a major global restructuring program to improve operational performance.

PMS is a leading supplier of diagnostic imaging systems, including magnetic resonance imaging (MRI), computed tomography (CT), catheterization labs, x-ray, and ultrasound. The company has invested more than $4 billion in its medical systems business over the past two years, most recently agreeing to buy nuclear medicine company Adac for $426 million.

"By combining the two companies' ranges of products and services, we will be able to offer our customers more disease-specific solutions, helping to improve patient outcome and efficiency,” said Hans Barella, president and CEO of Philips Medical System.





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