Dutch healthcare technology company Philips (PHG.AS) said on Tuesday it will buy EPD Solutions, a maker of cardiac imaging and navigation systems used to treat patients with heart rhythm disorders.
Philips will pay 250 million euros in cash ($292.1 million) upfront, followed by payments estimated to be worth around 210 million euros if milestones are met.
The takeover will give Philips a significant position in the rapidly growing market for cardiac arrhythmia ablation procedures within several years, Chief Executive Frans van Houten told reporters.
“It will take time to penetrate this market, already worth more than 2 billion euros, as most healthcare providers are conservative”, he said. “But EPD has a highly competitive, breakthrough technology, which can really address unmet needs.”
EPD’s system provides surgeons with “unique” detailed 3D anatomical information of the heart during ablation procedures, Van Houten said.
Since the separation of its lighting division (LIGHT.AS) in 2016, Philips has focused on medical devices and healthcare products.
The takeover of EPD Solutions further expands the company’s image-guided therapy business, after the multi-billion dollar acquisitions of heart disease devices maker Spectranetics last year and vascular imaging company Volcano in 2015.
Van Houten said Philips will continue to acquire companies in what it sees as core markets, such as image-guided therapy.
Philips’ sales in image-guided therapy showed double-digit growth in the first quarter of 2018, driving comparable sales of its Diagnosis & Treatment division up 9 percent to 1.5 billion euros.