- Complementary acquisition supports GE Healthcare’s $3 billion
Ultrasound business’ expansion from diagnostics into surgical and
therapeutic interventions
- Creates compelling customer offering and accelerates GE
Healthcare’s growth in precision health
- Adds capability in fast-growing advanced surgical visualization
segment; attractive-margin business serving accretive, high-growth
segments
GE (NYSE:GE) has entered into an agreement to acquire BK
Medical, a leader in advanced surgical visualization, from Altaris
Capital Partners for a cash purchase price of $1.45 billion.
BK Medical is an innovator in global intraoperative imaging and
surgical navigation, used to guide clinicians during minimally
invasive and robotic surgeries and to visualize deep tissue during
procedures in neuro and abdominal surgery, and in ultrasound
urology. BK Medical is headquartered in Boston and Copenhagen with
more than 650 employees and is delivering double-digit revenue
growth.
GE Healthcare President and CEO Kieran Murphy said, “Ultrasound
today forms an integral part of many care pathways, and BK Medical
is a strategic and highly complementary addition to our growing and
profitable Ultrasound business. This transaction helps GE
Healthcare continue to expand beyond diagnostics into surgical and
therapeutic interventions, simplifying decision-making for
clinicians and equipping them with greater insights to deliver
faster, more personalized care for their patients—representing
another step toward delivering precision health.”
BK Medical President and CEO Brooks West said, “We are immensely
proud of the organization and of the life-changing technology that
we have built at BK Medical, and look forward to our future as part
of the GE Healthcare family. Combining our expertise in
intraoperative imaging and surgical navigation with GE Healthcare’s
many strengths and global presence will accelerate our mission to
change the standard of care in surgical interventions. Our mission
to help surgeons make critical decisions using active imaging
aligns well with GE Healthcare’s mission to help physicians make
more informed decisions and improve patient outcomes, and we are
eager to begin this new chapter.”
GE Healthcare Ultrasound President and CEO Roland Rott said,
“Adding the fast-growing and relatively new field of real-time
surgical visualization to GE’s pre- and post-operative Ultrasound
capabilities will create an end-to-end offering through the full
continuum of care—from diagnosis through therapy and beyond. GE
Healthcare and BK Medical share a passion for clinical innovation,
and I’m excited to welcome BK Medical to our team.”
This transaction is expected to create value by further
strengthening BK Medical, including through significant synergies
with the benefit of GE’s technology and commercial scale. This
transaction enables BK Medical’s Active Imaging platform to reach
new customers and new markets around the world, and the combination
of GE Healthcare’s diagnostic imaging technology with BK’s ability
to enable decision-making and surgical visualization in
intervention will allow better decision-making throughout the care
continuum. GE Healthcare expects BK Medical to deliver rapid
revenue growth as well as margin expansion and free cash flow
growth. GE Healthcare also expects high-single-digit return on
invested capital by year five.
The parties expect the transaction to close in 2022, subject to
review by the relevant regulatory authorities.
Evercore acted as exclusive financial advisor to GE on the
transaction. Gibson, Dunn and Crutcher acted as legal advisor to
GE. J.P. Morgan Securities LLC served as lead financial advisor,
Morgan Stanley & Co. LLC served as financial advisor, and
Latham Watkins LLP and Schiff Hardin LLP acted as legal advisor to
BK Medical.
Forward-looking statements
This document contains “forward-looking statements”—that is,
statements related to future, not past, events. These
forward-looking statements often address our expected future
business and financial performance and financial condition, and
often contain words such as "expect," "anticipate," "intend,"
"plan," "believe," "seek," "see," "will," "would," "estimate,"
"forecast," "target," "preliminary," or "range." Forward-looking
statements by their nature address matters that are, to different
degrees, uncertain, and are subject to risks, uncertainties and
assumptions. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. The inclusion of
such statements should not be regarded as a representation that
such plans, estimates or expectations will be achieved. Important
factors that could cause actual results to differ materially from
such plans, estimates or expectations include, among others, (1)
that one or more closing conditions to the transaction, including
certain regulatory approvals, may not be satisfied or waived, on a
timely basis or otherwise, including that a governmental entity may
prohibit, delay or refuse to grant approval for the consummation of
the proposed transaction, may require conditions, limitations or
restrictions in connection with such approvals; (2) the risk that
the proposed transaction may not be completed in the expected time
frame, or at all; (3) uncertainty of the expected financial
performance of GE Healthcare or BK Medical following completion of
the proposed transaction, or failure to realize the anticipated
benefits of the proposed transaction; and (4) other risk factors as
detailed from time to time in GE’s reports filed with the SEC,
including GE’s annual report on Forms 10-K, periodic quarterly
reports on Form 10-Q, periodic current reports on Form 8-K and
other documents filed with the SEC. The foregoing list of important
factors is not exclusive.
About GE
GE (NYSE:GE) rises to the challenge of building a world that
works. For more than 125 years, GE has invented the future of
industry, and today the company’s dedicated team, leading
technology, and global reach and capabilities help the world work
more efficiently, reliably, and safely. GE’s people are diverse and
dedicated, operating with the highest level of integrity and focus
to fulfill GE’s mission and deliver for its customers.
www.ge.com
About GE Healthcare:
GE Healthcare is the $17 billion* healthcare business of GE
(NYSE: GE). As a leading global medical technology, pharmaceutical
diagnostics and digital solutions innovator, GE Healthcare enables
clinicians to make faster, more informed decisions through
intelligent devices, data analytics, applications and services,
supported by its Edison intelligence platform. With over 100 years
of healthcare industry experience and around 47,000 employees
globally, the company operates at the center of an ecosystem
working toward precision health, digitizing healthcare, helping
drive productivity and improve outcomes for patients, providers,
health systems and researchers around the world.
Follow us on Facebook, LinkedIn, Twitter, and Insights for the
latest news, or visit our website www.gehealthcare.com for more
information.
*Excluding BioPharma.
About BK Medical
BK Medical is a global intraoperative imaging and surgical
navigation company with headquarters in Boston and Copenhagen and
more than 650 employees worldwide. Through the advanced ultrasound
technology and sophisticated software algorithms of its active
imaging platform, BK Medical enables surgeons to make real-time,
data-based decisions during surgical procedures, resulting in
better clinical outcomes and reduced costs for patients,
physicians, and the healthcare system. With 40 years of expertise
in advanced ultrasound technology, the company has a global
installed base of more than 14,000 ultrasound platforms. BK Medical
technology is highly proprietary and protected with more than 136
patent families. For more information, please visit
www.bkmedical.com.
About Altaris
Altaris is an investment firm focused exclusively on the
healthcare industry. Altaris seeks to invest in companies that
deliver value to the healthcare system and improve patient outcomes
by providing innovative products and services. Since inception in
2003, Altaris has invested in more than 40 companies across its
five main investment funds. Altaris has $5.9 billion of equity
capital under active management and is headquartered in New York,
NY. For more information, please visit www.altariscap.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210923005544/en/
GE Healthcare Media Contacts Jennifer Fox +1 414 530 3027
Jennifer.R.Fox@ge.com Hannah Huntly GE Healthcare
Hannah.huntly@ge.com +44 7887 824201 BK Medical Media
Contact Jehana Ray 857.995.7449 jray@bkmedical.com GE
Investor Contact Steve Winoker 617.443.3400 swinoker@ge.com
GE Media Contact Mary Kate Mullaney 202.304.6514
marykate.nevin@ge.com
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