Royal Philips has entered an agreement to buy EPD Solutions, a specialist in image-guided procedures for heart rhythm disorders called cardiac arrhythmias, for a cash-based consideration of €250m.
The agreement also involves estimated contingent, milestone payments of about €210m at the time of closing of the deal.
EPD’s portfolio includes a cardiac imaging and navigation system designed to create a detailed 3D image of the cardiac anatomy in order to help electrophysiologists navigate the heart.
The system can also guide precise location and direction of catheters while performing the diagnostic and therapeutic procedures to address heart rhythm disorders.
Philips said that the acquisition will complement its interventional imaging systems, smart catheters, planning and navigation software and services portfolio.
The company intends to leverage the deal to launch new solutions into the emerging, more than €2bn worth market of image-guided treatment of cardiac arrhythmias.
Royal Philips CEO Frans van Houten said: “This acquisition will strengthen our ability to improve the lives of arrhythmia patients, and is entirely consistent with our strategic plan to broaden our image-guided therapy solutions portfolio and drive long-term profitable growth for Philips.”
The integration of Philips’ interventional imaging systems with EPD’s cardiac imaging and navigation system is expected to offer the maps and data required to guide location and treatment of cardiac arrhythmias.
EPD Solutions founder and chairman Shlomo Ben-Haim said: “I am convinced that as part of Philips, we will be able to grow EPD and help many electrophysiologists and patients worldwide, as we aim to reduce procedure costs, simplify navigation and treatment, and ultimately improve procedure efficacy.”
Subject to customary closing conditions, the acquisition is scheduled to be closed next month, after which EPD and its employees will join Philips’ Image-Guided Therapy unit.