Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced Philips will acquire US-based Raytel Cardiac Services (Raytel) (a division of Raytel Medical Corporation) and other ancillary operations from SHL Telemedicine Ltd., for approximately USD 110 million in cash. Subject to receipt of regulatory approval, the transaction is expected to close in the fourth quarter of 2007, upon which Raytel will become part of Philips' Home Healthcare Solutions business group. Raytel Cardiac Services is a leading US provider of home cardiac monitoring services that doctors prescribe to heart patients. Headquartered in Windsor, Connecticut, Raytel Cardiac Services employs highly-trained cardiac technicians working at monitoring centers, where they analyze patient data and provide real-time patient information to prescribing physicians.
Acquiring Raytel Cardiac Services represents a further step in Philips' healthcare strategy of improving patient outcomes in specific care cycles, such as cardiology: "Heart disease is the number one killer in the west. So Philips has invested heavily over the years to become the top supplier to hospitals of medical equipment for managing heart disease. Patients are living longer and healthcare costs are rising, so we're looking for innovative and effective ways to support both patients and the healthcare system. Raytel can help us extend the cardiac care cycle into the home, which is where patients prefer to stay, and where we see opportunities for addressing healthcare costs as well as quality of life issues," said Ron Feinstein, CEO of Philips' Home Healthcare Solutions business group.
The activities Philips is acquiring are expected to have 2007 sales of approximately USD 55 million. In the coming years, Philips aims to grow Raytel Cardiac Services by capitalizing on its existing relationships with 15,000 referring physicians and cardiologists who serve over 200,000 patients annually. Philips aims to leverage these relationships for Philips Lifeline's products and services as well as for Philips' in-house line of remote patient monitoring products and services. New products and services based on Philips' and SHL's products and solutions, such as congestive heart failure (CHF) monitoring in the home are also expected to fuel growth. Given that Philips Lifelines 750,000 subscribers often suffer from a variety of chronic illnesses, including CHF, Philips expects they too would benefit from a cardiac monitoring service supported by trained cardiac technicians that Raytel offers.
Since Raytel sells to physicians and cardiologists, these activities will be rebranded under the "Philips" name to benefit from the strength that the "Philips" brand enjoys among healthcare professionals.
Cardiac monitoring devices enable patients to be monitored in the comfort of their own homes. Raytel's highly trained healthcare professionals use telephone and Internet technology to monitor patients with pacemakers, suspected arrhythmias, implanted defibrillators and other cardiac related conditions. Reports are generated on each patient and forwarded to their doctor for review. On an annual basis, the company serves 200,000 patients and 15,000 physicians.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 125,800 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.
About SHL TeleMedicine
SHL TeleMedicine Ltd. is a leading provider and developer of advanced personal telemedicine
solutions to individuals and to the healthcare community. As a provider of remote health services in cardiology and in other medical areas, SHL maintains business operations in the US, Europe and Israel. SHL is listed on the SWX Swiss Exchange, symbol SHLTN. For more information see www.shl-telemedicine.com.