Imaging Giant Carestream Health to Sell Healthcare IT Business to Philips

VCBeat (WeChat Official Account: vcbeat) has learned that on March 7, 2019, Carestream Health, a leader in the field of medical imaging, signed an agreement with Royal Philips, a leader in health technology, to sell its Healthcare Clinical Information Systems (HCIS) business to Philips. The financial details of the agreement have not been disclosed, and both companies expect to close the transaction in the second half of 2019.

Carestream Health’s HCIS business unit provides imaging IT solutions for hospitals, imaging centers, radiology service providers, and specialty medical clinics.

Through this acquisition, Philips can expand its healthcare IT business by adding Carestream Health’s enterprise imaging platform to its robust portfolio, including a best-in-class VNA, diagnostic and enterprise viewers, multimedia reporting, workflow orchestrators, and more.

Carestream Health will retain its medical imaging, dental and industrial film, non-destructive testing, and precision coating businesses, which are not affected by this sale.

“We have achieved global success in providing radiology and enterprise imaging IT systems, helping healthcare professionals deliver high-quality care and improve their operations. By becoming part of Philips, the HCIS business will gain greater opportunities for development and growth,” said Ludovic d’Aprea, General Manager of Carestream Health Information Solutions, at a press conference. “Both companies are committed to meaningful innovation that is deeply rooted in their cultures. Customers will benefit from a broader portfolio of healthcare IT solutions designed to streamline medical imaging management, enable effective collaboration, and enhance patient care.”

Robert Cascella, Chief Business Leader of Precision Diagnosis at Royal Philips, added in a statement: “Our successful portfolio of innovations in imaging system platforms, workflow optimization, and AI-enabled informatics, combined with Carestream’s cloud-based enterprise imaging informatics platform and our complementary geographic footprints, will provide a solid foundation to deliver on the promise of precision diagnosis.”

Carestream Health, formerly Eastman Kodak’s Health Group, was acquired by Onex Corporation of Toronto, Canada, in 2007 and has accumulated many years of experience in the field of medical imaging. With comprehensive integrated solutions and a professional, full-service support system, Carestream Health has become a leader in the medical digital imaging market across multiple domains, including healthcare information management solutions, digital acquisition solutions, digital output solutions, digital mammography imaging solutions, dental and molecular imaging systems, and various digital and conventional X-ray film products. Currently, Carestream Health holds more than 1,000 technical patents and provides high-quality medical products to tens of thousands of customers in over 170 countries worldwide.

Royal Philips, founded in 1891 and headquartered in the Netherlands, is a leading health technology company. The company is committed to building an ecosystem for “end-to-end health engagement” through healthy lifestyles, as well as disease prevention, diagnosis, treatment, and home care, thereby improving people’s health outcomes and enhancing healthcare effectiveness. Philips currently holds leadership positions in diagnostic imaging, image-guided therapy, patient monitoring, health informatics, and consumer health and home care. In 2017, Philips’ HealthTech business generated sales of €17.8 billion, employed approximately 74,000 people worldwide, and provided sales and services in more than 100 countries.

(Compiled by: Tan Xin)