Royal Philips (NYSE:PHG) said today it has agreed to acquire Electrical Geodesics for $36.7 million (GBP £29 million).
Amsterdam-based Philips said that EGI’s portfolio of EEG hardware, software and acquisition sensors would work to complement its existing imaging tech and advanced informatics portfolio for neurological applications.
In the sale, Philips is offering $133.50 (GBP £105.40) for each EGI share, constituting a 36% premium to its June 21 closing value, the company said. The transaction is subject to customary closing conditions and stockholder approval, with a slated completion date in the 3rd quarter of 2017.
“In order to improve the treatment for some of the most complicated, life altering neurological disorders, we need more personalized and adaptive guidance tools to plan each individual patient’s therapeutic options. This acquisition will enable Philips to provide an integrated neurology solution comprising diagnostic imaging and clinical informatics to assess brain anatomy and physiological processes, and EEG mapping tools from EGI to measure electrical brain activity. By fusing these different tools together, we will create a more comprehensive map of the brain, and unlock new computational algorithms which will help to shorten the path to a definitive diagnosis and guide some of the most complex therapeutic strategies,” Philips neurodiagnostics biz lead Joe Burnett said in a prepared statement.
Philips said that EGI’s product portfolio includes its proprietary dense array EEG platform tech designed to gather brain activity data from more electrodes than traditional EEG products, generating higher quality and more precise information levels.
EGI’s tech has won clearance in the US and EU, and a number of other regions, Philips said.
“Our team is very excited to join Philips and continue to drive advancements in neurological disorders including epilepsy, stroke, Parkinson’s disease and many more. We will now complete the important work that we started 25 years ago, as part of a health technology leader that is known for its commitment to research and innovation. Our goal has always been to put the patient first and we feel this combination to be a perfect match,” EGI CEO & founder Don Tucker said in a press release.
In May, Philips said it inked a deal to acquire airway clearance solution developer RespirTech for an undisclosed amount.
