Philips, Post Lighting Spinoff, Eyes Billion-Dollar Deals
Wednesday, June 8, 2016
Royal Philips NV, the Dutch maker of health-care equipment, is looking at billion-dollar-plus acquisitions in the coming months following a spinoff of its lighting business.
Health-care informatics, combining technology and data to manage patient health, is a target market, Chief Executive Officer Frans van Houten said in an interview. A typical purchase might be similar to the company’s $1.2 billion takeover in 2014 of smart catheter-maker Volcano Corp., he said. Philips may also pursue smaller deals, he said.
Health care is Philips’s largest business and accounted for 45 percent of revenue last year. Technology in the industry is changing rapidly and traditional rivals like Medtronic Plc and new entrants such as Google parent Alphabet Inc. and Apple Inc. are stepping up the pressure. Philips’s wide-ranging product history -- everything from light bulbs and coffee makers to MRI machines -- could help it grab more of the connected market for homes and hospitals. The goal is to integrate hardware, software and services for health-care systems, an arena that includes tech giant International Business Machines Corp.