Philips Healthcare has agreed to acquire EPD Solutions, a privately-held specialist in technologies enabling image-guided therapies for cardiac arrhythmias, in a deal worth up to $460m.
CE marked in February, EPD's cardiac imaging and navigation system comprises proprietary algorithms and single-use electromagnetic sensors to generate a detailed 3D image of the cardiac anatomy and help electrophysiologists navigate the heart during cardiac arrhythmia ablation procedures. It can also pinpoint the location and orientation of catheters during the diagnostic and therapeutic procedures. The system has aPanoramic View feature that provides a flattened 3D view of the whole cardiac chamber. European centers have begun installing the system and Philips said that the US FDA is currently reviewing a 510(k) for the system.
British Virgin Islands-based EPD was founded by Shlomo Ben-Haim, the inventor of CARTO, the real-time 3D electro-anatomical cardiac mapping platform of Biosense, whichJohnson & Johnson acquired for over $400m in 1997 and combined with the Webster catheter offering to form the business known today as Biosense Webster Inc.. Ben-Haim is also behind the incubator and technology commercialization vehicle, the Hobart Group, of which EPD is a portfolio company.
Philips' existing image-guided therapy portfolio mainly addresses vascular surgery, interventional cardiology procedures like angioplasty and peripheral vascular interventions. The acquisition of EPD will put Philips in the €2bn-plus market for image-guided treatment of cardiac arrhythmias, which growing at a double-digit rate.
In addition to the $250m upfront cash payment, the purchase consideration also includes up to $210m in deferred milestones. On completion of the transaction, which is expected in July, EPD and its employees will become part of Philips’ Image-Guided Therapy business and Ben-Haim will continue to provide support to build a new business based on this acquisition.
This is Philips' second acquisition this year. In May, the company acquired NightBalance, a Dutch company that developed theSleep Position Trainer, a CE-marked device to treat positional obstructive sleep apnea and positional snoring.
Financial details of this deal were not disclosed.