Royal Philips (NYSE:PHG) said today it inked a deal to acquire image-guided cardiac arrhythmia treatment dev EPD Solutions for $293 million (EU €250 million) upfront with a possible additional $246.2 million (EU €210 million) upon completion of the deal based on certain milestones.
EPD Solutions produces cardiac imaging and navigation systems designed to aid electrophysiologists in navigating the heart through a detailed 3D image of the cardiac anatomy, Amsterdam-based Philips said. The system is also designed to identify the location and orientation of catheters during the diagnostic and therapeutic procedures for cardiac arrhythmias, the company added.
“EPD’s breakthrough innovation provides detailed 3D anatomical information of the heart during cardiac arrhythmia ablation procedures that is unique in the industry. The technology has the potential to address the key unmet need of real-time therapy assessment, which is one of the more significant limitations of the current standard of care. 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,” Philips CEO Frans van Houten said in a press release.
Philips said the acquisition will complement its existing portfolio of interventional imaging systems, smart caths, planning and navigation software. The acquisition is expected to close next month, after which EPD and its employees will become part of Philips image-guided therapy business.
“I am very pleased that Philips will become the home for our innovation, our business and our people. Philips’ expertise and leadership in interventional imaging and navigation is an excellent strategic fit with EPD. 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,” EPD Solutions founder & chair Shlomo Ben-Haim, who will stay on at Philips to help grow the business based on the acquisition, said in a prepared statement.
In May, Philips said it is joining with the American Heart Association and UPMC to launch a $30 million heart-focused collaborative venture capital fund.