According to relevant sources, Royal Philips (NV) is currently in strategic cooperation with Bank of America to expand its healthcare business by acquiring some medical device companies.
The insider also revealed that Philips' acquisition plan is still in its infancy, and the specific acquisition targets are still being further selected. It is planned to reach a strategic acquisition transaction within the next 6 to 12 months. It is speculated that Elekta AB, a medical device manufacturer from Sweden, has seen an impressive increase in share price in the past five years, or it will become the target of this Philips acquisition.
The insider said that the transaction amount involved in the acquisition is related to the disposal of the assets of the two parties. The amount will be raised through the initial public offering or paid by the sales revenue of the lighting business. Previously, the company has revealed its intention to split its lighting business next year and is currently considering splitting.
According to the insider, Philips has now focused on European and American medical device companies that produce and sell radiotherapy, medical imaging and home healthcare products. In December last year, Philips spent $1.2 billion to acquire medical device manufacturer Volcano to expand its business in cardiac and intravascular ultrasound imaging systems, focusing on high-margin healthcare.
According to Swedish bank analyst Johan Unnerus, the two giants in the field of radiotherapy and radiosurgery: Sweden's Elekta and the US Varian are likely to become Philips acquisition targets.
Unnerus said in a telephone interview: Elekta may be a good choice for Philips. Because the two companies are familiar with each other's business and have the same project.
As of 2:50 pm today, Elekta's share price rose to 62.50 krona, an increase of 9.1%, and the market value rose to 23.9 billion krona (a total of 2.8 billion US dollars), achieving the biggest increase since February 2010.
Regarding the details of the acquisition, both Philips and Bank of America declined to disclose, and Elekta did not disclose much information about the market speculations caused by the stock market surge.
According to the insider, Philips will invite Merrill Lynch to make advice for the acquisition of this round of medical companies. In addition, Philips has hired JP Morgan Chase, Goldman Sachs and Rothschild Bank as financial advisors to conduct an assessment of the next step in the lighting business split. The three agencies have not yet responded to this.
On the 27th of this month, Philips announced that due to the rapid development of the North American healthcare business, the market demand for clinical testing analysis and patient health consultants is increasing day by day, the company decided to split into the healthcare and lighting business in an effort to expand the high-profit medical business.
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