Philips Agrees To Acquire TomTec, Continues Buyout Spree
Zacks Investment Research | Jul 18, 2017 09:48PM ET
Dutch technology behemoth, Koninklijke Philips N.V. (NYSE:PHG) , recently announced an agreement to buy image-analysis software provider, TomTec Imaging Systems GmbH. Last month, the healthcare technology provider had announced the acquisition of two companies – CardioProlific and Spectranetics Corporation (NASDAQ:SPNC) . All the three buyouts are likely to be conducive to Philips’ image-guided therapy portfolio.
Philips boasts a large global installed base of customers and has earned a solid reputation among clients providing anatomical intelligence, ultra-mobile and portable ultrasound solutions.
The company has been striving to fortify its foothold in the cardiac ultrasound market. The latest buyout will likely prove to be a significant step toward achieving this goal. Financial details of the deal have been kept under wraps.
The Deal in Details
The acquisition is also expected to help Philips expand to other clinical areas, including obstetrics and gynecology. Germany-based TomTec specializes in diagnostic ultrasound that helps healthcare personnel to increase efficiency and diagnostic quality. Post this buyout, over 100 employees of TomTech will become part of Philips’ Ultrasound Business Group.
Apart from helping to commercialize Philips-branded products, TomTec will continue its vendor-neutral product line and integrate these medical software applications into third-party systems. Philips’ ultrasound image quality, 3D-imaging and transducer technology portfolios are expected to benefit the most from TomTec’s clinical applications, workflow solutions, and research and development (R&D) capabilities.
Acquisitions to Stoke Healthcare Unit
Over the past two years, Philips has successfully morphed into a healthcare technology provider. To expand its presence in the domain, the company is increasingly turning to bolt-on acquisitions. The TomTec buyout marks the company’s seventh acquisition in the calendar year. Shares of the company have returned 21.4% in the last six months, outperforming the Zacks categorized Zacks Investment Research
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