Carestream Health selling healthcare IT business to Philips

Carestream Health announced Thursday, March 7, its plan to sell the company’s healthcare information systems (HCIS) business to Royal Philips. The financial terms of the transaction have not been made public.

“We have had global success in providing radiology and enterprise imaging IT systems to help medical professionals provide quality care and enhance their operations,” Ludovic d’Aprea, Carestream’s general manager for healthcare information solutions, said in a prepared statement. “By becoming part of Philips, the HCIS business will have a greater opportunity to thrive and grow. Both organizations share a commitment to meaningful innovation which is deeply embedded in each company’s culture. Customers will have access to a broader portfolio of healthcare IT solutions to simplify medical image management, enable effective collaboration and enhance patient care.”

“This acquisition will enhance our ability to provide flexible solutions to hospitals and health systems,” Robert Cascella, chief business leader of precision diagnosis at Royal Philips, said in the same statement. “The combination of our successful innovations in imaging system platforms, workflow optimization and artificial intelligence-enabled informatics, combined with Carestream’s cloud-based enterprise imaging informatics platform and complementary geographic footprint will provide a solid foundation to deliver on the promise of precision diagnosis.”

According to Carestream, its medical imaging, dental and industrial films, non-destructive testing and precision coating divisions will remain with the company.

“Our focus will be on delivering innovation that is life changing—for patients, customers, channel partners, communities and other stakeholders—and we will grow the company for long-term success,” David C. Westgate, Carestream’s chairman, president and CEO, said in the statement.

The sale is expected to be closed in the second half of 2019.