08/05/2005
Philips completes acquisition of Stentor
Cooley Godward LLP represented Stentor Inc. in this transaction.
Andover, Mass. – Philips Medical Systems, a division of Royal Philips Electronics (NYSE: PHG; AEX: PHI), today announced that it has completed the acquisition of a 100% stake in Stentor Inc. On July 6, 2005, Philips first announced its intention to acquire Stentor, a leader in the distribution, management, and storage of digital medical images. The acquisition is designed to strengthen Philips position as a primary supplier of technology to the Healthcare Information Technology (IT) market. As a result of this acquisition, Philips now ranks globally as the number 2 supplier of picture archive and communications systems (PACS).
“We are convinced that Stentor and its people are a great asset to Philips and our customers,” said Jouko Karvinen, CEO of Philips Medical Systems. “We are able to offer a complete and integrated portfolio from diagnostic imaging and monitoring to departmental IT solutions and enterprise IT to our customers. In addition, it will help us become an even better partner for healthcare organizations.”
“In the past three months Stentor has experienced its highest revenue quarter to date, complimented by 14 new customer contracts, including a 7-year contract renewal from Henry Ford Health System,” said Oran Muduroglu, former Stentor President and now head of the global PACS business for Philips Medical Systems. “Moving forwards as the Philips Global PACS Business, we will leverage Philips leading position in the healthcare IT space and continue to focus on our customers and dedicate ourselves to providing superior solutions that in turn, enable providers to enhance patient care, increase efficiencies and lower costs.”
Stentor’s continued strong business performance was re-enforced by its continued success on customer satisfaction, having received the #1 PACS rating for acute care facilities over 200 bedsin the KLAS Industry Report mid-year 2005, following on the heels of its #1 position in 2003 and 2004.By ranking Stentor first among the top ten PACS providers, the KLAS 2005 Mid-Year Report Card demonstrates Stentor’s continued customer-focused leadership in the PACS category.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of $37.7 billion (EUR 30.4 billion) in 2005. With activities in the three interlocking domains of healthcare, lifestyle and technology and 159,200 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.philips.com/newscenter.