Philips Medical Systems said it has signed a definitive agreement to acquire Latham, NY-based MRI components provider Intermagnetics General.
Under terms of the proposed deal, the company will acquire Intermagnetics for $27.50 per share, or a total equity value of approximately $1.3 billion to be paid in cash on completion of the acquisition, according to Andover, MA-based Philips.
Philips said that it expects the Intermagnetics purchase to rationalize its MR supply chain, enhance its competitive position in that market space, and enable it to participate in the radiofrequency (RF) coil market.
The firm said there will be a one-time charge of approximately $107 million related to in-process research and development expenses, integration of supply chain, and various purchase accounting items, which it will take in the latter half of this year. Philips anticipates the transaction to be accretive to its operating margin toward the end of 2007.
Completion of the transaction is subject to regulatory approval, the terms and conditions of the merger agreement, and the approval of Intermagnetics' shareholders.
By AuntMinnie.com staff writers
June 15, 2006
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