What You Should Know:
– Philips announces the acquisition of Capsule, a leading vendor-neutral Medical Device Integration Platform with a software-as-a-service business model
– The Capsule acquisition is a strong fit with Philips’ strategy to transform the delivery of healthcare along the health continuum with integrated solutions.
Philips, today announced that it has signed an agreement to acquire Capsule Technologies, Inc., an Andover, MA-based provider of medical device integration and data technologies for hospitals and healthcare organizations. Capsule’s Medical Device Information Platform – comprised of device integration, vital signs monitoring, and clinical surveillance services – connects almost all existing medical devices and EMRs in hospitals through a vendor-neutral system. Capsule’s platform captures streaming clinical data and transforms it into actionable information for patient care management to enhance patient outcomes, improve collaboration between care teams, streamline clinical workflows and increase productivity.
Founded in 1997, Capsule is the leading global provider of medical device integration (MDI) and information solutions for healthcare providers. Capsule maximizes the value of live streaming medical device data by analyzing and synthesizing it across multiple sensors and devices attached to the patient to advance insight-driven, proactive care.
To date, the company serves over 2,800 hospitals and healthcare organizations in 40 countries across the world. Capsule’s innovations are developed by strong R&D teams in the U.S. and France. In 2020, the company achieved sales of over USD 100 million with strong double-digit sales growth. The majority of sales is related to recurring software-as-a-service and licensing revenues. The acquisition will be accretive to Philips sales growth and Adjusted EBITA margin in 2021.
Acquisition Underscores Philips Strategy to Scale Its Patient Care Management Solutions
The acquisition of Capsule is a strong fit with Philips’ strategy to transform the delivery of care along the health continuum with integrated solutions. Philips’ current portfolio already includes real-time patient monitoring, therapeutic devices, telehealth, informatics and interoperability solutions. The combination of Philips’ industry-leading portfolio with Capsule’s leading Medical Device Information Platform, connected through Philips’ secure vendor-neutral cloud-based HealthSuite digital platform, will greatly enrich and scale Philips’ patient care management solutions for all care settings in the hospital, as well as remote patient care. As part of the acquisition, Capsule and its approximately 300 employees will become part of Philips’ Connected Care segment.
“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 will acquire Capsule for $635M (approximately EUR 530 million) in cash. The transaction is subject to certain closing conditions, including regulatory clearances in relevant jurisdictions outside of the U.S. The transaction is expected to be completed in the first quarter of 2021.