Philips to make $1.1 billion acquisition

Royal Philips Electronics has announced that it will purchase Marconi’s Medical Systems (MS) business for $1.1 billion, making Philips the world’s second largest manufacturer of medical diagnostic imaging equipment.

Royal Philips Electronics and Marconi plc have announced today that Philips has agreed to acquire Marconi’s Medical Systems (MS) business for $1.1 billion.

According to a statement, the acquisition of MS will enable Philips Medical Systems (PMS) to become a leading player in the high technology computed tomography scanner (CT) business and strengthen its magnetic resonance imaging systems (MRI) and nuclear medicine systems (NM) businesses.

The acquisition, combined with that of Agilent’s Healthcare Solutions Group, which is expected to close in the third quarter of 2001, will make Philips the world’s second largest manufacturer of medical diagnostic imaging equipment, with PMS having annual sales amounting to EUR 5.0 billion.

Products include X-Ray equipment, Ultrasound equipment, CT scanners, MRI systems, Nuclear Medicine systems, PET systems, as well as patient monitoring devices.

In addition to the acquisition of MS, Royal Philips Electronics has agreed to enter into a five year technology supply partnership with Marconi under which Philips will purchase up to $150 million of equipment and services.

The transaction is expected to close in the fourth quarter of this year and is subject to customary regulatory approvals.