Sectra and Philips Sign Large Mammography Modality Acquisition Deal
SHELTON, Connecticut, June 27, 2011 /PRNewswire/ –
Sectra [http://www.sectra.com ] (NASDAQ OMX Stockholm: SECT B) and Royal
Philips Electronics (AEX: PHI, NYSE: PHG) have signed an agreement under
which Philips will acquire Sectra’s mammography modality operations.The cash
purchase consideration amounts to EUR 57.5 million on cash and debt-free
basis. The agreement also includes an additional possible earn-out EUR 12.5
million in accordance with specially agreed terms and conditions.
Through this deal Sectra’s Medical Systems business area gains a
distinct approach towards medical imaging IT, in which IT systems for the
management of mammography images, Sectra Breast Imaging PACS, will remain
one of the core areas
“This is an excellent transaction for all parties. 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
for products for the management of digital radiology images,” says Jan-Olof
Brueer, President and CEO of Sectra AB. “Philips acquires a unique and
competitive product and technology. 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.”
The transaction comprises Sectra’s mammography modality operations
worldwide, except for Australia and New Zeeland were Sectra will continue to
sell and service Sectra MicroDose Mammography under a separate agreement
with Philips. The transaction is subject to certain contractual and other
closing conditions. The takeover is expected to occur during the third
calendar quarter of 2011.
Sectra has developed and brought the MicroDose Mammography modality to
the market. For the benefits of millions of women it provides high-quality
breast cancer detection at half the radiation compared to all other
“Our MicroDose technology will now save even more women lives, since it
will be much faster spread around the globe through Philips’ vast
distribution network”, adds Jan-Olof Brueer.
Focus on medical IT
Sectra’s Medical Systems business area has about 530 employees and
reported sales of SEK 831 million for the financial year 2010/2011.
Radiology IT, which is Medical Systems’ largest product area, represented
85% of sales.
“Through this transaction, we will gain a more distinct approach toward
medical imaging IT, the area in which we have our core competence. We will
continue to work with what we are best at: providing our customers with IT
solutions that enhance the efficiency of medical care, optimize production
and contribute to improved quality of care,” says Torbjorn Kronander,
President of Sectra’s Medical Systems business area.
Questions & Answers for customers:
Questions & Answers investors and journalists:
Video material: http://www.sectra.com/philips-microdose-video
Press room: http://www.sectra.com/medical/press/
Sectra develops and sells IT systems and products for radiology, mammography
and orthopedics. More than 1,100 hospitals, clinics and imaging centers
worldwide use the systems daily, together performing over 55 million
radiology examinations annually. This makes Sectra one of the world-leading
companies within systems for handling digital radiology images. In
Scandinavia, Sectra is the market leader with more than 50% of all film-free
installations. Sectra’s systems have been installed in North America,
Scandinavia and most major countries in Europe and the Far East.
Sectra was founded in 1978 and has its roots in Linkoping University in
Sweden. The company’s business operation includes cutting-edge products and
services within the niche segments of medical systems and secure
communication systems. Sectra has offices in 12 countries and operates
through partners worldwide. Sales in the 2010/2011 fiscal year totaled SEK
911 million. The Sectra share is quoted on the NASDAQ OMX Stockholm AB
exchange. For more information, visit http://www.sectra.com.
Contact: Helena Pettersson, Chief Press and Investor Relations Officer
Sectra AB in Sweden, Phone: +46-706-27-52-04, http://www.sectra.com
SOURCE Sectra AB