Philips to acquire Sectra mammography for $82M

Royal Philips Electronics has signed an agreement to purchase Sectra's mammography modality operations for  EUR 57.5 million (USD $81.8 million).

The companies announced the deal today at a press conference in Stockholm, which will put Sectra Mamea AB and almost all of Sectra’s modality operations into the hands of Royal Philips Electronics, which is based in Amsterdam. Philips and Sectra will maintain previous, separate distribution agreements in the Australia and New Zealand markets.

 The acquisition is expected to close in the third quarter of 2011 and includes a possible earn-out of EUR 12.5 million (USD $17.8 million). One hundred ten Sectra employees are expected to make the transfer to Philips, the companies said.

Sectra signed the deal in the hopes of exploiting Philips’ expansive distribution network, particularly to increase the sales of Sectra’s flagship MicroDose Mammography system, the Linköping, Sweden-based company indicated. This would help boost the mammography and health IT’s company’s worldwide sales, which totaled SEK 127 million (USD $20 million) in 2010. Sectra also said the acquisition by Philips will add SEK 300 million (USD $46.4 million) in capital stores to the company, after taxes.