Carestream Health to Sell Its Healthcare IT Business to Philips

Carestream Health has signed an agreement with Royal Philips to sell its health care information systems (HCIS) business to Philips.

Carestream’s HCIS business unit provides imaging IT solutions to multisite hospitals, radiology services providers, imaging centers, and specialty medical clinics around the world. The business has developed strong customer relationships in attractive, high-growth health care segments and is positioned for continued growth and success.

As a result of this acquisition, Philips’ expanded healthcare IT business will feature Carestream’s enterprise imaging platform—including best-in-class vendor-neutral archiva, diagnostic and enterprise viewers, multimedia reporting, workflow orchestrator, and clinical, operational and business, analytics tools—as part of its broad portfolio.

“We have had global success in providing radiology and enterprise imaging IT systems to help medical professionals provide quality care and enhance their operations,” says Ludovic d’Aprea, Carestream’s general manager for healthcare information solutions. “By becoming part of Philips, the HCIS business will have a greater opportunity to thrive and grow. Both organizations share a commitment to meaningful innovation, which is deeply embedded in each company’s culture. Customers will have access to a broader portfolio of health care IT solutions to simplify medical image management, enable effective collaboration, and enhance patient care.”

Like Carestream, Philips has built a strong, global business based on customer focus, world-class technical excellence and continuous innovation.

“Philips partners with global healthcare providers to connect people, information, and technology with the commitment to deliver on the Quadruple Aim of improved patient experiences, better health outcomes, improved staff experiences, and lower costs of care,” says Robert Cascella, chief business leader precision diagnosis at Royal Philips. “This acquisition will enhance our ability to provide flexible solutions to hospitals and health 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.”

Carestream will retain its medical imaging, dental, and industrial films, nondestructive testing, and precision coating businesses, which are not impacted by the sale. “These established businesses have solid financial foundations [and] innovative technology platforms, and have earned the trust of loyal customers around the world,” said David C. Westgate, chairman, president, and CEO of Carestream. “Our focus will be on delivering innovation that is life changing—for patients, customers, channel partners, communities, and other stakeholders—and we will grow the company for long-term success.”

Following receipt of all regulatory and applicable government approvals, input from works councils and unions, and meeting all preconditions, the two companies will work towards closing the sale in the second half of this year and will continue to operate independently until closing.

Additional terms of the transaction were not disclosed.

— Source: Carestream Health