News | December 20, 2007

Philips Buys Respironics for $5.1 Billion

December 21, 2007 - Royal Philips Electronics announced it will acquire U.S.-based healthcare firm Respironics Inc. for $5.1 billion.

Respironics is a global leader in the treatment of Obstructive Sleep Apnea (OSA), a sleep disorder characterized by the repeated cessation of breathing during sleep. It is estimated that in the U.S. alone there are 18-20 million sufferers of moderate or severe OSA of which only 15-20 percent have been diagnosed.

In joint statements, the companies said they had reached a definitive merger agreement under which Philips will acquire all of Respironics’ outstanding shares for $66 a share.

The deal marks the second U.S. acquisition for the Amsterdam company this week. Tuesday, Philips said it would buy U.S. clinical information-technology and service provider Visicu Inc. Visicu enables critical care medical staff to actively monitor patients in hospital intensive care units from remote locations. On Dec. 4, Philips announced the purchase of another U.S. clinical IT company, Emergin Inc. for an undisclosed amount. Emergin sells software to rapidly transmit medical alarm signals throughout hospitals, Philips said.

For more information: www.medical.philips.com

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