“Integrated patient care management solutions supported by essential real-time patient data and AI are core to our strategy to improve patient outcomes and care provider productivity by seamlessly connecting care,” said Roy Jakobs, Chief Business Leader Connected Care at Royal Philips. “The acquisition of Capsule will further expand our patient care management offering. We look forward to integrating our strengths, adding a vendor-neutral medical device integration platform that further unlocks the power of medical device data to enhance patient monitoring and management, improve collaboration and streamline workflows in the ICU, as well as other care settings in the hospital and beyond its walls.”
“We are very excited to become part of Philips and step up on our goal of empowering clinicians with simplified workflows and timely, actionable insights,” said Hemant Goel, CEO of Capsule Technologies. “Together, we will be even better positioned to liberate, aggregate, analyze, and share clinical data from connected devices that will support clinicians making more informed decisions, and ultimately drive the transformation from reactive care to insight-driven, proactive care delivery.”
Founded in 1997, Capsule is headquartered in Andover, Massachusetts in the U.S., and serves over 2,800 hospitals and healthcare organizations in 40 countries across the world. Capsule’s innovations are developed by strong R&D teams in the U.S. and France. In 2020, the company achieved sales of over USD 100 million with strong double-digit sales growth. The majority of sales is related to recurring software-as-a-service and licensing revenues. The acquisition will be accretive to Philips sales growth and Adjusted EBITA margin in 2021.
Philips will acquire Capsule for a cash consideration of USD 635 million (approximately EUR 530 million). The transaction is subject to certain closing conditions, including regulatory clearances in relevant jurisdictions outside of the U.S. Through an early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the U.S. Federal Trade Commission and Department of Justice have already confirmed that they allow the transaction to be completed. The transaction is expected to be completed in the first quarter of 2021. Capsule and its approximately 300 employees will become part of Philips’ Connected Care segment.