Royal Philips Electronics (AEX: PHI, NYSE: PHG) has agreed to acquire the mammography equipment product line of Sectra AB (NASDAQ OMX Stockholm: SECT B), a Swedish provider of medical systems and secure communication systems. With this acquisition Philips will broaden its product portfolio with a unique digital mammography solution that enables breast screening with less burden to women in terms of X-ray radiation dose.
Under the terms of the agreement, Philips will pay a cash consideration of EUR 57.5 million to acquire Sectra's mammography equipment business on a cash and debt-free basis. The agreement also includes an additional possible earn-out of EUR 12.5 million in accordance with specific terms and conditions. Approximately 110 people are expected to transfer with the business. The closing of the transaction, which is subject to certain contractual and other closing conditions, is expected in the third quarter of 2011.
"We strive to advance patient care by improving the timely detection of many of today's deadly diseases, including breast cancer," said Steve Rusckowski, CEO of Philips Healthcare. "The investment in this advanced digital mammography technology marks an important step in the execution of Philips' strategy to expand its Woman Healthcare portfolio with a wider range of screening digital mammography systems."
Digital mammography has proven to be a powerful diagnostic tool for the early detection of breast cancer, a disease that killed 458,000 women globally in 2010. The technology uses X-rays that are detected digitally and helps a doctor to identify abnormalities in breast tissue.
Sectra's MicroDose Mammography solution will complement Philips' offering in digital mammography and delivers high quality breast images while exposing women to up to 50 percent less X-ray radiation dose than other digital mammography systems. Moreover, the MicroDose Mammography technology offers opportunities for future innovative imaging solutions that provide information beyond 2D anatomical breast images.
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About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people's lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs about 117,000 employees with sales and services in more than 100 countries worldwide. With sales of EUR 22.3 billion in 2010, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in male shaving and grooming, portable entertainment and oral healthcare.