Philips, a healthcare technology company, signed an agreement to acquire Capsule Technologies for $635 million from Francisco Partners.
Capsule Technologies offers a suite of connected patient monitoring medical devices and data integration platforms that can combine device integration, vital signs monitoring, and clinical surveillance services.
Philips said this acquisition would further expand its delivery of care and integrated solutions. Specifically, the company notes that it will join its telehealth, connected patient monitoring, and informatics products.
According to the company, In 2020, it achieved sales of over $100 million with strong double-digit sales growth. The majority of sales is related to recurring software-as-a-service and licensing revenues.
“Integrated patient care management solutions supported by essential real-time patient data and AI are core to our strategy to improve patient outcomes and care provider productivity by seamlessly connecting care,” said Roy Jakobs, Chief Business Leader Connected Care at Royal Philips.
“The acquisition of Capsule will further expand our patient care management offering. We look forward to integrating our strengths, adding a vendor-neutral medical device integration platform that further unlocks the power of medical device data to enhance patient monitoring and management, improve collaboration and streamline workflows in the ICU, as well as other care settings in the hospital and beyond its walls.”
Philips continues to expand its footprint in the digital health sector through acquisitions. More recently, Philips acquired BioTelemetry, a wearable cardiac monitoring patch, and connected glucose monitors, for $2.8 billion. To date, Philips acquired 16 digital health companies, including Medumo, Direct Radiology, Carestream Health, and Xhale Assurance.
A total of 184 digital health companies were acquired in 2020, compared to 169 in 2019, a 9% increase in M&A activity in year-over-year, according to Mercom’s Q4 and 2020 Digital Health Funding and M&A Report