Philips Continues Acquisition Spree, Buys CardioProlific
Zacks Investment Research | Jun 29, 2017 09:31PM ET
Koninklijke Philips N.V. (NYSE:PHG) has been exceptionally active in the acquisition space, of late. After announcing the acquisition of Spectranetics Corporation (NASDAQ:SPNC) earlier this week, the health technology behemoth has now acquired CardioProlific Inc. as it seeks to fortify its image-guided therapy devices portfolio.
Philips has morphed from a lighting company into a healthcare technology provider over the last couple of years, and it is leveraging bolt-on acquisitions to expand its footprint in the space. The CardioProlific buyout marks the company’s sixth acquisition this year. The company earlier announced deals to acquire Spectranetics Corporation, Electrical Geodesics, Respiratory Technologies, Respiratory Technologies, Inc. and Australian Pharmacy Sleep Services.
The company’s Diagnosis & Treatment revenues have been encouraging in recent times, and these accretive acquisitions should lend solid momentum to the unit’s growth in the quarter to come. Also, Philips’ transformation from a hardware-oriented to a software-driven business, which is a higher-margin, recurring-revenue model, sits well with the investors.
This is reflected in the company’s stock movement in the recent past. Shares of the company have gained 16.9% in the last six months, outperforming the Zacks categorized Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.