Philips to acquire medical data technology provider Capsule for $635M

Koninklijke Philips NV is looking to acquire Capsule Technologies Inc. for $635 million in cash.

Andover, Mass.-based Capsule's medical device information platform will strengthen Philips' portfolio of patient care management products, which are designed for hospital care settings and remote patient care, the Amsterdam-based health technology said in a Jan. 19 news release.

Capsule, which is backed by investor Francisco Partners Management LP, provides medical data technologies for hospitals and healthcare organizations. The company's sales in 2020 reached over $100 million, mostly coming from its recurring software-as-a-service and licensing revenues. The acquisition is expected to be accretive to Philips' sales growth and adjusted EBITA margin in 2021.

Other financial details of the transaction were not disclosed.

Capsule and its roughly 300 employees will join Philips' Connected Care segment upon closing of the deal.

The deal is slated to close in the first quarter of 2021, subject to certain closing conditions, including regulatory clearances in relevant jurisdictions outside of the U.S.

Barclays was financial adviser, and Kirkland & Ellis LLP was legal adviser to Capsule Technologies on the transaction.

In December 2020, Philips announced an agreement to acquire BioTelemetry Inc., a remote medical technology company, for $72 per share, or an implied enterprise value of $2.8 billion.