Royal Philips Electronics (NYSE:PHG, AEX:PHI) will acquire start-up Stentor Inc., a provider of picture archiving and communication systems (PACS) used for storing, managing and distributing digital radiology images throughout hospitals and healthcare facilities. Philips will pay approximately $280 million in cash for Stentor, whose shareholders include venture capital fund Gilo Ventures (6%). Davidi Gilo has served as chairman of Stentor's board of directors since February 2003.
Stentor will be incorporated into the healthcare IT business of Philips' Medical Systems division. From its headquarters location in Brisbane, California, Stentor will become the global headquarters of Philips' overall PACS business.
Stentor expects 2005 sales to grow to approximately $50 million and 2006 sales annual growth is projected at 50% based on the company's "pay-per-study" business model, in which customers pay a fee to view, distribute and store medical images rather than purchase a PACS system.
Stentor's PACS technology can transmit medical images -- with full resolution -- 4 to 16 times faster than any competitor, and with significantly less hardware costs for hospitals.
Both Stentor and Philips share a vision of creating a digital hospital environment with electronic health records (EHRs) that provide physicians with on-demand access to all patient data, anytime, anywhere.
KLAS, an independent monitor of Healthcare IT vendor performance, has consistently been rated as a leading PACS solution with #1 PACS positions in KLAS Top 20 end of year reports for 2003 (global PACS category) and 2004 (large acute care PACS category).
Published by Globes [online], Israel business news - www.globes.co.il - on Wednesday, July 06, 2005