Netherlands-based Royal Philips Electronics is making another move into the U.S. healthcare market, this time targeting both inpatient and home health with the announcement today it is making a $5.1 billion bid to acquire Respironics, Murrysville, Pa., a maker of respiratory-support systems and monitors.
The offer of $66 per share is to be filed by a wholly owned subsidiary of Philips Holding USA, which is itself a wholly owned subsidiary of Royal Philips Electronics, and was unanimously approved by Respironics board of directors, according to its news release. Stock in the publicly traded Respironics has ranged over the past year between $37.38 a share and $53.11, its closing price Thursday. It was trading at about $65 at deadline.
Respironics would become the headquarters for Philips Home Healthcare Solutions group within Philips Healthcare, the company said. Senior officers of the company are expected to remain in place "and will continue to lead and manage the business," the written statement said. According to the company, products from Philips Home Healthcare Solutions are used by nearly a million people in their own homes or in facilities in the U.S. and Canada.
Earlier this week, Philips, which is headquartered in Amsterdam, announced it had entered into an agreement to buy Visicu, a Baltimore-based developer of a remote monitoring service for hospital intensive-care units, for about $430 million. And earlier this month, Philips announced it would buy Emergin, Boca Raton, Fla., a maker of wireless emergency alarm and communication systems for hospitals for an undisclosed amount. -- by Joseph Conn