Sectra and Philips Complete Modality Transaction
SHELTON, Connecticut, September 1, 2011 /PRNewswire/ –
Sectra [http://www.sectra.com/medical/index.html ] (NASDAQ OMX
Stockholm: SECT B) has completed a mammography-modality deal with Royal
Philips Electronics (AEX: PHI, NYSE: PHG). Philips will pay EUR 57.5 million
in a cash-on-cash and debt-free basis and take over the acquired modality
operation today, September 1, 2011.
“The deal with Philips will give us the resources we need to continue
our efforts and expand our business. In Medical Systems, we can concentrate
on our core business and aim for a larger share of the market growth for
medical imaging IT systems, which is growing rapidly,” says Torbjorn
Kronander, President of Sectra’s medical systems operation.
The divested operation represented 14% of the Sectra Group’s net sales
for fiscal year 2010/2011 and has approximately 110 employees. The
transaction comprises Sectra’s mammography-modality operations worldwide,
except for Australia and New Zealand where Sectra will continue to sell and
service the unique MicroDose mammography modality under a separate
distribution agreement with Philips.
The agreement includes an additional earn-out of EUR 12.5 million, which
will fall due if the agreed terms and conditions are achieved over a period
of five years. This transaction, excluding the possible earn-out, is
estimated to generate a capital gain in terms of earnings of about SEK 300
million after tax for Sectra.
Focus ON medical IT
Sectra is one of the world’s largest suppliers of medical imaging IT
solutions. Sectra provides radiology, mammography, orthopeadic and
rheumatology clinics with medical-imaging IT solutions and services that
enhance the efficiency of medical care, contribute to raising the quality of
care and optimize production. Enhancing the efficiency of healthcare for
women is a priority for Sectra.
“Mammography imaging IT solutions is a niche market where Sectra holds a
leading position. To further increase the value of mammography programs,
customers can also add our innovative osteoporosis analysis service. We will
now be working with all modality providers in the mammography market, which
enhances our reputation as a highly professional and independent IT systems
integrator,” says Torbjorn Kronander.
For additional information:
Press room: http://www.sectra.com/medical/press
Sectra develops and sells IT systems and products for radiology,
mammography and orthopaedics. 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
784 million excluding discontinued operation. The Sectra share is quoted on
the NASDAQ OMX Stockholm AB exchange. For more information, visit
Contact: Dr. Torbjorn Kronander, President, Sectra Imtec AB, Phone: