Philips Electronics said today it is to buy US medical products company Respironics for €3.6 billion to strengthen its healthcare business.
Philips is paying $66 per share in cash for Respironics. The transaction, which is expected to close in the first quarter of 2008, will immediately add to sales growth and earnings, Philips said.
This is Philips's second acquisition in the medical products sector this week after its purchase of US medical systems and service provider Visicu today.
Philips's medical products division is key to its strategy of becoming a higher margin company.