Amsterdam, the Netherlands, Jan. 19 (Korea Bizwire) – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced that it has signed an agreement to acquire Capsule Technologies, Inc., a leading provider of medical device integration and data technologies for hospitals and healthcare organizations. Capsule’s Medical Device Information Platform – comprised of device integration, vital signs monitoring and clinical surveillance services – connects almost all existing medical devices and EMRs in hospitals through a vendor-neutral system. Capsule’s platform captures streaming clinical data and transforms it into actionable information for patient care management to enhance patient outcomes, improve collaboration between care teams, streamline clinical workflows and increase productivity.
The acquisition of Capsule is a strong fit with Philips’ strategy to transform the delivery of care along the health continuum with integrated solutions. Philips’ current portfolio already includes real-time patient monitoring, therapeutic devices, telehealth, informatics and interoperability solutions. The combination of Philips’ industry-leading portfolio with Capsule’s leading Medical Device Information Platform, connected through Philips’ secure vendor-neutral cloud-based HealthSuite digital platform, will greatly enrich and scale Philips’ patient care management solutions for all care settings in the hospital, as well as remote patient care.
“Integrated patient care management solutions supported by essential real-time patient data and AI are core to our strategy to improve patient outcomes and care provider productivity by seamlessly connecting care,” said Roy Jakobs, Chief Business Leader Connected Care at Royal Philips. “The acquisition of Capsule will further expand our patient care management offering. We look forward to integrating our strengths, adding a vendor-neutral medical device integration platform that further unlocks the power of medical device data to enhance patient monitoring and management, improve collaboration and streamline workflows in the ICU, as well as other care settings in the hospital and beyond its walls.”
“We are very excited to become part of Philips and step up on our goal of empowering clinicians with simplified workflows and timely, actionable insights,” said Hemant Goel, CEO of Capsule Technologies. “Together, we will be even better positioned to liberate, aggregate, analyze, and share clinical data from connected devices that will support clinicians making more informed decisions, and ultimately drive the transformation from reactive care to insight-driven, proactive care delivery.”
Founded in 1997, Capsule is headquartered in Andover, Massachusetts in the U.S., and serves over 2,800 hospitals and healthcare organizations in 40 countries across the world. Capsule’s innovations are developed by strong R&D teams in the U.S. and France. In 2020, the company achieved sales of over USD 100 million with strong double-digit sales growth. The majority of sales is related to recurring software-as-a-service and licensing revenues. The acquisition will be accretive to Philips sales growth and Adjusted EBITA margin in 2021.
Philips will acquire Capsule for a cash consideration of USD 635 million (approximately EUR 530 million). The transaction is subject to certain closing conditions, including regulatory clearances in relevant jurisdictions outside of the U.S. Through an early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the U.S. Federal Trade Commission and Department of Justice have already confirmed that they allow the transaction to be completed. The transaction is expected to be completed in the first quarter of 2021. Capsule and its approximately 300 employees will become part of Philips’ Connected Care segment.
For further information, please contact:
Philips Global Press Office
Tel.: +31 6 15213446
Philips Investor Relations
Tel.: +31 20 59 77055
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 81,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.
This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
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Source: Philips International B.V. via GLOBE NEWSWIRE