Philips Medical Systems parent Royal Philips Electronics will be acquiring cardiology image and information management firm Witt Biomedical for approximately $165 million.
Philips of Andover, MA, and Witt of Melbourne, FL, believe the acquisition positions the companies to offer an integrated cardiac cath lab suite, including cardiac PACS and hemodynamic monitoring and clinical reporting systems.
In unaudited 2005 results, Witt recorded sales of approximately $49 million, up 18% compared with 2004 sales figures, and an operating margin of 30%, according to the firm. Philips expects the acquisition will be accretive to its margins from 2008 onward, with initial margin dilution due to purchase accounting treatment.
The deal is subject to regulatory approval and is expected to close in the second quarter, according to Philips. Upon completion of the acquisition, Witt will be integrated into the cardiovascular x-ray business unit of Philips Medical Systems.
By AuntMinnie.com staff writers
March 9, 2006
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