Philips Healthcare Expands Business in Emerging Markets with Indian Acquisition

Philips Healthcare (Best, The Netherlands) announced it has reached an agreement to acquire Alpha X-Ray Technologies (Mumbai, India), a leading manufacturer of cardiovascular X-ray systems targeting the economy segment of the Indian market.

Upon closing of this transaction in the fourth quarter of 2008, which is subject to certain contractual and other conditions such as regulatory approvals, Alpha will become part of the cardiovascular X-ray business within Philips' Healthcare sector. Financial details of this agreement were not disclosed.

The announcement marks Philips' strong presence in high-growth healthcare market in emerging economies, and follows the earlier acquisitions of healthcare companies Brazilian Dixtal Biomédica e Tecnologia, Shenzhen Goldway Industrial in China, and VMI Sistemas Medicos in Brazil. In commenting on the acquisition, Ronald de Jong, CEO Emerging Markets of Philips Healthcare, said, "The acquisition of Alpha is another great example of how Philips continues to strengthen its industrial and commercial footprint in emerging markets. It provides us with significant presence in the high-growth economy segment for cardiovascular X-ray systems, underlining our commitment to deliver affordable healthcare solutions in emerging markets.”

Alpha's economy segment product range complements Philips' existing cardiovascular X-ray range and helps Philips to capture an even larger slice of the global EUR 1.8 billion cardiovascular X-ray market. Analysts estimate that the economy segment is the fastest growing segment of the global cardiovascular X-ray market, with anticipated annual growth rates of 10-15% in coming years. Philips will leverage its global distribution network to sell Alpha's cardiovascular X-ray products, thereby maximizing the value of the acquisition and adding another growth engine to Philips Healthcare's emerging markets business.

"The addition of Alpha represents another significant addition to our emerging markets healthcare product portfolio, and comes on the heels of two key product introductions in India: the SureSigns VM3 patient monitor and the cost-effective ultrasound HD15 system,” said Murali Sivaraman, CEO of Philips Electronics India, Ltd. "Furthermore, this acquisition highlights the pivotal role India plays in Philips' emerging markets growth strategy. Going forward, we are committed to leverage both organic and inorganic opportunities to drive growth in India,” Mr. Sivaraman added.

Alpha X-Ray Technologies is a leading cardiovascular X-ray manufacturer in India. Alpha manufactures X-ray systems and components for the economy segment of the global cardiovascular X-ray market.

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