Dedalus Holding in Talks to Buy Agfa's Healthcare IT Business

Belgian digital imaging company Agfa-Gevaert Group is in talks with the Italian company Dedalus Holding to sell a part of its Healthcare IT Business, for €975 million (~$1.07 billion).

The Business, which generates around €260 million (~$286 million) of revenues, consists of the Healthcare Information Solutions, Integrated Care activities, and Imaging IT solutions.

The proposed deal is subject to customary closing conditions and will be completed by Q2 2020. If the deal happens, Dedalus Holding will acquire 100% in the Business.

“Going forward, Agfa HealthCare will focus on Enterprise Imaging Solutions,” said Christian Reinaudo, CEO of the Agfa-Gevaert Group, in a company press release.

The combined group would have a presence in over 30 countries and would hold a significant market share in Italy, Germany, and France.

“The acquisition would give an important boost to the European consolidation of the hospital software sector,” said Giorgio Moretti, Chairman of Dedalus Holding in a company press release. “The need to have a European operator in a sector with very high R&D investments is a guarantee for the entire European healthcare system to be able to count on products and technologies that have now become essential to reduce clinical risk, increase the quality of care and service to the patient, and optimize the growing costs for taxpayers, due to the many factors that are putting the budgets of all countries under financial stress. It would be a transaction that would create the pan-European leader in the healthcare software sector with a focus in the three largest countries of continental Europe. The group would have about 3,500 employees and the competences to develop an innovative platform of products for an industry which needs to improve efficiency and integrated solutions”.

Other similar technologies that received funding:

Carestream Health sold its healthcare information systems business to Philips. Carestream’s HCIS business unit provides imaging IT solutions to multi-site hospitals, radiology services providers, imaging centers and specialty medical clinics around the world.

Topcon Corporation – a Japanese manufacturer of ophthalmic instruments for eye examination, diagnosis, and treatments – acquired KIDE Clinical Systems, a provider of cloud-based medical imaging solutions for eye specialists.

Hitachi Healthcare Americas acquired VidiStar, the developer of a web-based diagnostic viewer and structured reporting system for medical imaging and clinical decision support.

According to Mercom’s Q3 and 9M 2019 Digital Health Funding and M&A Report, there were 125 Digital Health M&A transactions in 9M 2019, compared to 172 transactions in the same period of the last year.