Royal Philips Electronics and Respironics have signed a definitive merger agreement to which Philips will commence a tender offer to acquire all of the outstanding shares of Respironics for a total purchase price of $5.26 billion U.S. (3.6 billion EUR) to be paid in cash upon completion.
Philips said the transaction will add to its product categories in obstructive sleep apnea and home respiratory care. In addition, the company said the acquisition will complement Philips’ patient monitoring businesses in the hospital setting.
The Respironics board of directors of has unanimously approved the transaction and recommended the offer to their shareholders.
Respironics, of Murrysville, Pa., is a provider of global sleep therapy solutions and respiratory markets. The company develops, manufactures, distributes and markets products in the field of respiratory medical technology, which are used in both home settings as well as in hospitals and clinics. Respironics has approximately 5,300 employees worldwide. Almost three-quarters of Respironics’ sales are achieved in its sleep and home respiratory business, which consists of diagnostic and therapeutic devices for sleep-disordered breathing and chronic respiratory diseases, Philips said.
The offer is subject to customary conditions, and expected to begin on Jan. 8, according to Philips. The company anticipates the transaction to close as soon as the first quarter of this year.