Philips completes $5 billion Respironics buy

Deals

Dutch Philips Electronics said it had completed the acquisition of US sleep therapy products maker Respironics Inc for $5.1 billion, its largest deal to date.

The deal, which was announced on December 21, together with the acquisition of clinical IT companies VISICU Inc. and Emergin, will result in acquisition and integration charges of about €200 million ($266.3 million).

Of this figure, about €100 million is expected to come off 2008 earnings before interest, taxes and amortization (EBITA), Philips said in a statement.

Philips is the world's biggest lighting maker, a top three hospital equipment maker and Europe's biggest consumer electronics producer.

Respironics is focused on medical equipment used in the home, particularly to diagnose and treat sleep and respiratory disorders such as obstructive sleep apnea.

Philips has said the acquisition will add to earnings straight away. (Reuters)

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