In the latest remodeling of the imaging technology landscape, Philips announced it will split into two companies, one merging its healthcare and technology businesses, the other focusing on lighting.

The divisions that will comprise the healthcare and technology company, to be called HealthTech, posted combined sales of approximately 14.2 billion euros in 2013 and employed 54,800 people, according to an article on the New York Times web site.

In the past, the healthcare unit focused on imaging technology, patient care information systems,  home healthcare and healthcare transformative services, a division launched last year to help providers improve operational and financial performance, according to the article. The consumer lifestyle division focused on health and wellness, personal care and domestic appliances.

In melding the two divisions into one standalone company, Philips likely will seek synergies between its traditional healthcare businesses and the rapidly expanding wearable technology consumer market.

In creating a separate lighting business, Philips intends to give the company access to capital markets and to continue to seek a buyer for the LED division, a move previously announced.

The restructuring will enable the company to achieve approximately $385 million in savings by 2016, according to the New York Times.

“Both companies will be able to make the appropriate investments to boost growth and drive profitability, ultimately generating significantly more value for our customers, employees and shareholders,” said Frans van Houten, Philips chief executive, in a news release.

Philips shares climbed 3.72% to $31.26 at market close following the announcement.