Healthcare Industry News: Royal Philips
News Release - December 4, 2007
Philips to Acquire US-Based Clinical IT Company EmerginAMSTERDAM, The Netherlands & BOCA RATON, Fla.--(HSMN NewsFeed)--Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced it will acquire US-based Emergin, Inc. The terms of the deal were not disclosed. Emergin is the leading US provider of software utilized to rapidly transmit medical alarm signals throughout hospitals. The transaction is expected to close in the fourth quarter of 2007, upon which Emergin will become part of the Patient Monitoring business unit within Philips’ Healthcare sector. Through this acquisition, Philips will expand the use of information technology in healthcare – and specifically in its patient monitoring business – to improve patient outcomes and help hospitals work more efficiently.
Steve Rusckowski, CEO of Philips Healthcare explains: “At Philips, we’ve built up a number one position in patient monitoring systems, and you’ll find our monitors throughout the hospital – from the emergency room and the operating room, to the intensive care unit. They provide key information on a patient’s health for doctors and nurses. We’re seeing however the ratios of patients to medical staff on the rise, and our customers are looking for solutions that help them access the critical patient data that our monitors provide, quickly and flexibly throughout the hospital. Emergin’s software provides that functionality, and will enhance the performance of our patient monitoring equipment, making it a good fit for this business.”
Emergin’s powerful alarm management and event notification software helps ensure that critical information is sent rapidly to the right caregiver on the personal communication device of their choice – be it a pager, wireless telephone, PDA or LED sign. Emergin’s software has wide acceptance among hospital chief information officers (CIOs), who increasingly play a central role in the purchasing decisions at hospitals. The acquisition of Emergin will enable Philips to integrate the functionality offered by Emergin’s software directly into Philips’ current and future patient monitoring products. Philips also expects to capitalize on Emergin’s strong relations with hospital CIOs. Philips has a leading position in the global patient monitoring market, which in 2006 was estimated to be approximately EUR 2 billion or approximately USD 3 billion.
“Over the past five years, Emergin has brought several innovations to market in concert with Philips, from new care models to multi-faceted alarm notification methods. The Philips acquisition will enable Emergin to maintain its market leadership by accelerating its time to market and immediately expanding its global footprint,” said Michael A. McNeal, President & CEO of Emergin.
Emergin is a privately-held software vendor based in Boca Raton, Florida, with approximately 100 employees. Founded in 1995, Emergin has seen strong demand for its software solutions, with 2007 sales at an estimated USD 18 million – or roughly 50% year-on-year growth over the past three years. Following completion of the acquisition, growth is expected to accelerate further as Philips expands Emergin’s activities beyond its North American base.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 128,100 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.
Headquartered in Boca Raton, Florida, Emergin (a derivative of ‘emergency’ and ‘innovation ’) is the leading provider of clinical alarm and event management solutions for healthcare. Emergin has helped more than 5,000 enterprise organizations improve real-time communications, safety and quality. In healthcare, Emergin has provided messaging and connectivity solutions to more than 1,000 hospitals, including five Malcolm Baldrige Quality Award recipients, 30% of the nation’s Magnet Hospitals, 50% of the Leapfrog Top-50 hospitals, and six of the Top-10 Heart Hospitals.
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
Source: Royal Philips Electronics
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