Netherlands-based Royal Philips Electronics has acquired US-based software firm Emergin to expand the use of IT in its patient monitoring business for helping hospitals work more efficiently.
Emergin provides software utilized to transmit medical alarm signals throughout hospitals, which ensures that critical information is sent rapidly to the right caregiver on their personal communication device such as a pager or mobile phone. According to Philips, Emergin’s software is used mostly among hospital chief information officers (CIO), who play a central role in the purchasing decisions at hospitals.
Philips said that this acquisition will enable it to integrate the functionality offered by Emergin’s software into its current and future patient monitoring products. It also expects to capitalize on Emergin’s strong relations with hospital CIO’s. Philips claims that it has a leading position in the global patient monitoring market, which in 2006 was estimated to be approximately E2 billion or approximately $3 billion.
At Philips, we’ve built up a number one position in patient monitoring systems, and you’ll find our monitors throughout the hospital. They provide key information on a patient’s health for doctors and nurses. We’re seeing however the ratios of patients to medical staff on the rise, and our customers are looking for solutions that help them access the critical patient data that our monitors provide, quickly and flexibly throughout the hospital, said Steve Rusckowski, chief executive at Philips Healthcare.
Over the past five years, Emergin has brought several innovations to market in concert with Philips, from new care models to multi-faceted alarm notification methods. The Philips acquisition will enable Emergin to maintain its market leadership by accelerating its time to market and immediately expanding its global footprint, said Michael McNeal, president and chief executive at Emergin.
Philips said that the transaction will close in the fourth quarter of 2007, after which Emergin will become part of the patient monitoring business unit within Philips’ healthcare sector.
The company has been focusing on acquisitions to expand its product portfolio. Last week, it acquired North America-based luminaires company Genlyte Group for $2.7 billion to enhance its lighting products.
Source: ComputerWire daily updates