Royal Philips Electronics is to acquire Sectra’s MicroDose mammography modality, which detects breast cancer accurately at half the radiation dose of other modalities.
The acquisition will enable Philips to expand its women’s healthcare portfolio with a ground-breaking technology and specialised product teams, and enable Sectra to focus on developing its presence in healthcare IT.
Philips has purchased the MicroDose modality for €57.5 million in cash, with an additional possible earn-out of €12.5 million.
The transaction covers Sectra’s mammography modality operations in Europe (including the UK) and worldwide, except for Australia and New Zeeland where Sectra will continue to sell and service Sectra MicroDose Mammography under a distribution agreement with Philips.
The MicroDose Mammography modality, developed and commercialised by Sectra, is now used by millions of women worldwide. The relevant product teams, including sales and service staff, will transfer to Philips.
Sectra Medical Systems will focus on its continued growth in medical imaging IT, including Sectra Breast Imaging PACS.
“This is an excellent transaction for all parties,” said Jan-Olof Brüer, President and CEO of Sectra AB. “Sectra will free up resources and funds that can be used to develop and expand our operations in medical imaging IT, in which we are among the major companies in the world.
“Philips will acquire a unique and competitive product. The MicroDose modality operations and customers will benefit from the resources and knowledge that Philips, one of the world’s leading suppliers of radiology equipment, will bring to the development of the product offering.
“Our MicroDose technology will now save even more women’s lives,” he added, “since it will be much faster spread around the globe through Philips’ vast distribution network.”
The transaction is expected to be completed in the third quarter of 2011.