Philips’ Acquisitions Expand Cardiac Services Business
October 5, 2007 – Royal Philips Electronics announced it will acquire U.S.-based Raytel Cardiac Services, a division of Raytel Medical Corp., and other ancillary operations from SHL Telemedicine Ltd., for approximately $110 million in cash, as part of Philips’ strategy enhance its healthcare offerings in cardiology.
Subject to receipt of regulatory approval, the transaction is expected to close in the fourth quarter of 2007, upon which Raytel will become part of Philips’ Home Healthcare Solutions business group. Raytel Cardiac Services is a leading U.S. provider of home cardiac monitoring services that doctors prescribe to heart patients. Raytel provides a service for analyzing patient data and providing real-time patient information to prescribing physicians.
The activities Philips is acquiring are expected to have 2007 sales of approximately $55 million. In the coming years, Philips aims to grow Raytel Cardiac Services by capitalizing on its existing relationships with 15,000 referring physicians and cardiologists who serve over 200,000 patients annually. Philips aims to leverage these relationships for Philips Lifeline’s products and services as well as for Philips’ in-house line of remote patient monitoring products and services. New products and services based on Philips’ and SHL’s products and solutions, such as congestive heart failure (CHF) monitoring in the home are also expected to fuel growth.
Since Raytel sells to physicians and cardiologists, these activities will be rebranded under the “Philips” name to benefit from the strength that the “Philips” brand enjoys among healthcare professionals.
For more information: www.medical.philips.com