Philips To Acquire Clinical IT Company Emergin

Philips Healthcare (Best, The Netherlands) reported that it will acquire US-based Emergin, Inc. (Boca Raton, FL, USA). The terms of the deal were not disclosed.

Emergin is the leading US provider of software utilized to rapidly transmit medical alarm signals throughout hospitals. The transaction is expected to close in the fourth quarter of 2007, upon which Emergin will become part of the Patient Monitoring business unit within Philips' Healthcare sector. Through this acquisition, Philips will expand the use of information technology in healthcare, and specifically in its patient monitoring business, to improve patient outcomes and help hospitals work more efficiently.

Steve Rusckowski, CEO of Philips Healthcare, explained, "At Philips, we've built up a number one position in patient monitoring systems, and you'll find our monitors throughout the hospital--from the emergency room and the operating room, to the intensive care unit. They provide key information on a patient's health for doctors and nurses. We're seeing however the ratios of patients to medical staff on the rise, and our customers are looking for solutions that help them access the critical patient data that our monitors provide, quickly and flexibly throughout the hospital. Emergin's software provides that functionality, and will enhance the performance of our patient monitoring equipment, making it a good fit for this business.”

Emergin's alarm management and event notification software helps ensure that critical information is sent rapidly to the right caregiver on the personal communication device of their choice--be it a pager, wireless telephone, personal digital assistant (PDA), or light-emitting diode (LED) sign. Emergin's software has wide acceptance among hospital chief information officers (CIOs), who increasingly play a central role in the purchasing decisions at hospitals. The acquisition of Emergin will enable Philips to integrate the functionality offered by Emergin's software directly into Philips' current and future patient monitoring products. Philips also expects to capitalize on Emergin's strong relations with hospital CIOs. Philips has a leading position in the global patient monitoring market, which in 2006 was estimated to be approximately US$3 billion.

"Over the past five years, Emergin has brought several innovations to market in concert with Philips, from new care models to multi-faceted alarm notification methods. The Philips acquisition will enable Emergin to maintain its market leadership by accelerating its time to market and immediately expanding its global footprint,” said Michael A. McNeal, president and CEO of Emergin.


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