Reflecting the growing desire of many healthcare purchasers to buy from a select few vendors sporting broad product lines, Royal Philips Electronics of the Netherlands agreed late last month to buy ATL Ultrasound, Bothell, Wash., for about $800 million in cash.
Royal Philips is a full-line supplier of diagnostic imaging equipment, except for ultrasound.
"Healthcare providers are asking more for a bundling" of products, says Jeremy Cohen, a spokesman for Philips, in Amsterdam. ATL "fills the gap in our portfolio," he adds.
Likewise, ATL officials say that becoming part of a full-line diagnostic imaging supplier would enhance the ultrasound company's appeal to decisionmakers at group purchasing organizations and healthcare systems.
"Having a multimodality approach . . . will enhance both of our (companies' sales) positions." says Cass Diaz, ATL's senior vice president for worldwide sales and marketing.
With revenues of $430 million, ATL claims about 15% of the $2.5 billion worldwide market for diagnostic ultrasound. Philips Medical Systems, the Dutch electronics conglomerate's U.S. diagnostic imaging division, is headquartered in Shelton, Conn.
