News | May 12, 2008

Philips to Acquire Brazilian Patient Monitoring Company

May 13, 2008 - Philips today announced it has reached an agreement to acquire Brazilian-based Dixtal Biomédica e Tecnologia (Dixtal), a Brazilian manufacturer of in-hospital patient monitoring systems, in a move to bolster Philips’ healthcare presence in high-growth emerging markets .

Dixtal manufacturers patient monitor, anesthesia and ventilation equipment, ECG (electrocardiogram) and sensors for vital sign measurements. The Brazilian company will become part of the Patient Monitoring business within Philips’ Healthcare sector, and Philips expects Dixtal’s financial results will be consolidated in this business as of the third quarter of 2008. The terms of the deal were not disclosed.

Today’s announcement marks another step Philips is taking to expand its presence in high-growth healthcare markets in emerging economies, following the company’s earlier announced acquisitions of healthcare companies Shenzhen Goldway Industrial in China and VMI Sistemas Medicos in Brazil. In commenting on the deal, Mr. Daurio Speranzini Júnior, Senior Vice-President of Philips Healthcare Latin America, said: “Emerging markets represent a real opportunity for us to keep growing our healthcare business at Philips. If you just take Latin America, our addressable healthcare market in 2007 was estimated to be valued at approximately EUR 1.2 billion, and growing at twice the rate of developed markets. Acquiring Dixtal will help us further tap into that growth.”

The agreement with Dixtal will also bolster Philips’ presence in the global medical equipment market for ‘critical care’ – the medical equipment used to care for patients experiencing acute and critical illness or injury. Acquiring Dixtal will not extend Philips’ product portfolio to include Dixtal’s mid- to economy-range patient monitoring product,and other key components of critical care, including Dixtal’s anesthesia machines and its invasive ventilation products. This acquisition complements Philips’ recent move into the noninvasive ventilation business through the acquisition earlier this year of US-based Respironics.

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