Philips Medical makes $1.3bn MRI scanner acquisition

Philips Medical has announced it has bought Intermagnetics, a manufacturer of MRI scanner components and accessories, for $1.3 billion (701 million pounds).

Intermagnetics develops high-field superconducting magnets used in MRI scanners as well as patient monitoring devices and radio frequency coils for hospitals. Philips Medical says the merger will help to strengthen their foothold on the MRI scanner market and compete in the market for radio frequency coils.

In addition to the expense of buying Intermagnetics, a further 85 million euros (58 million pounds) will be spent on the complexities of incorporating the company, as well as research and development expenses.

Juoko Karvinen, chief executive officer of Philips Medical Systems, remarked: “In the short term, we expect to gain equipment market share and to grow the installed base by expanding our product offerings with an accelerated innovation rate and a lower cost supply chain.”

“In the longer term, we believe that MRI technology will become important in molecular imaging, therefore, positioning us well for the future.”

Philips Medical will also acquire the Intermagnetics energy technology subsidiary, SuperPower, to decide how best to fulfil its potential.

According to Philips, the global MRI market was worth 5 billion euros in 2005 and the number of MRI procedure has increased by ten per cent every year.

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