Carestream Health agrees to sell healthcare IT business to Philips

Carestream Health has signed an agreement to sell its healthcare information systems (HCIS) business to Royal Philips, the company announced Thursday, March 7.

Following the acquisition, Philips will absorb Carestream’s enterprise imaging platform, including its vendor neutral archive (VNA), diagnostic and enterprise viewers, multimedia reporting, workflow orchestrator and clinical, operational and business analytics tools, into its imaging portfolio.

“We have had global success in providing radiology and enterprise imaging IT systems to help medical professionals provide quality care and enhance their operations,” said Ludovic d’Aprea, Carestream’s general manager for Healthcare Information Solutions, in a prepared statement. “By becoming part of Philips, the HCIS business will have a greater opportunity to thrive and grow. Customers will have access to a broader portfolio of healthcare IT solutions to simplify medical image management, enable effective collaboration and enhance patient care.”

Carestream is expected to hold onto its medical imaging, dental and industrial films, non-destructive testing and precision coating businesses which were not a part of the sale, according to the statement.

“This acquisition will enhance our ability to provide flexible solutions to hospitals and health systems,” said Robert Cascella, chief business leader of precision diagnosis at Royal Philips, 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.”

The sale is expected to close in the second half of this year pending all regulatory and necessary government approvals. Financial terms of the transaction weren't disclosed.