Royal Philips has signed an agreement to acquire Capsule Technologies Inc., a provider of medical device integration and data technologies for hospitals and healthcare organizations. Capsule’s Medical Device Information Platform – comprised of device integration, vital signs monitoring and clinical surveillance services – connects almost all existing medical devices and EMRs in hospitals through a vendor-neutral system. Capsule’s platform captures streaming clinical data and transforms it into actionable information for patient care management to enhance patient outcomes, improve collaboration between care teams, streamline clinical workflows and increase productivity.
“The acquisition of Capsule is a strong fit with Philips’ strategy to transform the delivery of care along the health continuum with integrated solutions. Philips’ current portfolio already includes real-time patient monitoring, therapeutic devices, telehealth, informatics and interoperability solutions. The combination of Philips’ industry-leading portfolio with Capsule’s leading Medical Device Information Platform, connected through Philips’ secure vendor-neutral cloud-based HealthSuite digital platform, will greatly enrich and scale Philips’ patient care management solutions for all care settings in the hospital, as well as remote patient care,” according to a news release.
“Integrated patient care management solutions supported by essential real-time patient data and AI are core to our strategy to improve patient outcomes and care provider productivity by seamlessly connecting care,” said Roy Jakobs, chief business leader connected care at Royal Philips. “The acquisition of Capsule will further expand our patient care management offering. We look forward to integrating our strengths, adding a vendor-neutral medical device integration platform that further unlocks the power of medical device data to enhance patient monitoring and management, improve collaboration and streamline workflows in the ICU, as well as other care settings in the hospital and beyond its walls.”
“We are very excited to become part of Philips and step up on our goal of empowering clinicians with simplified workflows and timely, actionable insights,” said Hemant Goel, CEO of Capsule Technologies. “Together, we will be even better positioned to liberate, aggregate, analyze and share clinical data from connected devices that will support clinicians making more informed decisions, and ultimately drive the transformation from reactive care to insight-driven, proactive care delivery.”
Founded in 1997, Capsule is headquartered in Andover, Massachusetts in the U.S., and serves over 2,800 hospitals and health care organizations in 40 countries across the world. Capsule’s innovations are developed by strong R&D teams in the U.S. and France. In 2020, the company achieved sales of over $100 million with strong double-digit sales growth. The majority of sales is related to recurring software-as-a-service and licensing revenues. The acquisition will be accretive to Philips sales growth and Adjusted EBITA margin in 2021.
Philips will acquire Capsule for a cash consideration of $635 million. The transaction is subject to certain closing conditions, including regulatory clearances in relevant jurisdictions outside of the U.S. Through an early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the U.S. Federal Trade Commission and Department of Justice have already confirmed that they allow the transaction to be completed. The transaction is expected to be completed in the first quarter of 2021. Capsule and its approximately 300 employees will become part of Philips’ Connected Care segment.
