Radiology giant Royal Philips Electronics, Amsterdam, will acquire Stentor, Brisbane, Calif., a developer of picture archiving and communication systems, for about $280 million in cash. The deal will yield $45.1 million for the University of Pittsburgh Medical Center, which launched Stentor and has invested $9.1 million in the company over the past nine years, UPMC said. Stentor offers a "pay per study" business model, in which customers pay a fee to view, distribute and store medical images, rather than purchase a PACS outright. Officials said they expect Stentor's sales to grow 50% in 2006 from the $50 million projected for this year. Philips said the acquisition would strengthen its position in healthcare information technology.
Separately, Tyco International said it acquired Vivant Medical, a developer of microwave ablation technology, for about $66 million, with up to $35 million in additional payments if certain goals are met. Ablation is a minimally invasive procedure used to treat cancer. -- by Cinda Becker