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Carestream Sheds Health IT Business

2019-03-11




Carestream said it will sell its health IT business to Philips for an undisclosed amount. The company will retain its medical imaging, dental and industrial films, non-destructive testing, and precision coating businesses which are not impacted by the sale.

Carestream Health
Carestream Health is shedding its healthcare information systems (HCIS). The Rochester, NY-based company has agreed to sell the business unit to Royal Philips. Financial terms were not disclosed.

The unit provides imaging IT solutions to multi-site hospitals, radiology services providers, imaging centers, and specialty medical clinics. With this acquisition, Philips' healthcare IT business will include Carestream's enterprise imaging platform—including best in class VNA, diagnostic and enterprise viewers, multimedia reporting, workflow orchestrator, and clinical, operational and business analytics tools—as part of its portfolio.

Carestream will retain its medical imaging, dental and industrial films, non-destructive testing, and precision coating businesses which are not impacted by the sale.

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By becoming part of Philips, the HCIS business will have a greater opportunity to thrive and grow, said Ludovic d’Aprea, Carestream’s general manager for the business unit.

"Customers will have access to a broader portfolio of healthcare IT solutions to simplify medical image management, enable effective collaboration and enhance patient care," d'Aprea said.

Robert Cascella, chief business leader of precision diagnostics at Philips said the acquisition will enhance the company's ability to provide flexible solutions to hospitals and healthcare systems.

"The combination of our successful innovations in imaging system platforms, workflow optimization, and artificial intelligence-enabled informatics, combined with Carestream’s cloud-based enterprise imaging informatics platform and complementary geographic footprint will provide a solid foundation to deliver on the promise of precision diagnosis," Cascella said.

The companies expect to close the sale in the second half of the year.

Last year Philips acquired EPD Solutions for $292 million upfront and Remote Diagnostic Technologies for an undisclosed sum.

 

SOURCE:MDDI