June 28, 2011 — Sectra and Philips Healthcare have signed an agreement under which Philips will acquire Sectra’s mammography modality operations for approximately $80 million. Through this deal Sectra’s Medical Systems business will focus on medical imaging information technology (IT).
Sectra has developed and brought the MicroDose Mammography modality to the market. It provides high-quality breast cancer detection at half the radiation compared to all other mammography modalities.
The transaction comprises Sectra’s mammography modality operations worldwide, except for Australia and New Zealand, where Sectra will continue to sell and service MicroDose Mammography under a separate distribution agreement with Philips.
The acquisition includes the legal entity Sectra Mamea AB and modality operations in Sectra’s sales and service organizations. Approximately 110 employees are expected to transfer with the business. Sectra Mamea AB had sales in the most recent financial year of $19 million. This transaction will have a positive impact on the Sectra Group’s operating profit for the current financial year and is estimated to generate a capital gain in terms of earnings for Sectra of about $46 million after tax, excluding the possible earn-out.
The additional possible earn-out based purchase consideration will become due if specially agreed terms and conditions are achieved over a period of five years from the first calendar quarter after the date of closing. The transaction is subject to certain contractual and other closing conditions. The completion of the transaction is expected to occur during the third calendar quarter of 2011.
Sectra’s Medical Systems business area has about 530 employees and reported sales of $128 million for the financial year 2010-2011. Radiology IT, which is Medical Systems’ largest product area, represented 85 percent of sales.
Medical Systems will focus on continued profitable growth in medical imaging IT. Sectra Breast Imaging picture archiving and communication systems (PACS), for the management of mammography images, will remain one of the core areas.
For more information: www.sectra.com/medical/press/