China World Technology Medical Equipment Service Group
Philips Healthcare acquires Capsule Technologies, Inc. for US$635 million and continues to focus on digital care
Philips Medical has reached an agreement with Capsule Technologies, Inc., a medical digital service provider, to complete the acquisition at the end of March this year at a price of US$635 million. After the acquisition is completed, nearly 300 employees of Capsule Technologies, Inc. will join Philips Medical’s digital care department.
Capsule Technologies, Inc. is a service provider that provides medical device integration (MDI) and digital information solutions. Its platform products have been used by more than 2,800 medical institutions around the world, and can connect more than 940 medical devices and devices. The agency provides an active digital monitoring process. In 2020, the company's sales exceeded 100 million U.S. dollars, achieving double-digit growth.
Philips said that this acquisition adds to Philips' product portfolio including patient monitoring, treatment, telemedicine, informatics and interactive solutions, and is in line with Philips' digital care transformation strategy. Philips officially stated that the core direction of its digital care transformation strategy is to actively provide intelligent health management solutions.
Last year, due to the impact of the epidemic, Philips’ business revenue was greatly impacted, but its digital care business performed well. According to its Q2 financial report for 2020, the sales of its digital care business during the same period increased by about 14%, which to some extent cushioned the impact of the epidemic on its financial situation. In the second quarter of last year, Philips sales fell by approximately 6% year-on-year, and profit margins also fell by 2.3% year-on-year.
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