USA – General Electric (GE) has announced that it has acquired ultrasound company BK Medical from Altaris Capital Partners in an all-cash purchase worth US$1.45 billion bolstering its medical imaging business.
BK Medical, with head offices in Boston and Copenhagen, is a pioneer in intraoperative imaging and surgical navigation.
The company’s active imaging systems are designed for surgeons and urologists, to provide real time inside visualizations of a patient’s body.
The company, employs over 650 people boasts a robust product line that is used in a variety of medical specialties, including general surgery, robotic-assisted surgery, neurosurgery and spine surgery, and urology.
BK Medical, which has been in the imaging business for 40 years, has more than 14,000 ultrasound platforms installed globally.
BK Medical will be integrated into General Electric’s Healthcare division. This segment provides technologies for patient monitoring, medical imaging, drug discovery, and other applications.
It also provides technologies for biopharmaceutical manufacturing. In the second quarter of 2021, the segment generated US$4.5 million in revenue, accounting for 25.3 percent of total revenue.
General Electric anticipates that the addition of BK Medical’s expertise in advanced ultrasound technology, combined with its strong innovation capabilities and efficient team, will enable it to develop comprehensive product offerings and provide precision health to customers.
The BK Medical acquisition will supplement General Electric’s US$3 billion ultrasound business, allowing it to expand into diagnostics, surgical, and therapeutic interventions.
GE expects high-single-digit return on its investment in BK Medical by the fifth year. The deal is expected to close in 2022 subject to review by the relevant regulatory authorities.
“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,” said Kieran Murphy, president and chief executive of GE Healthcare.
“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,” he added.
General Electric also acquired Zionexa, a company based in France, which will likely strengthen its offerings in the precision health and theranostics space.
Theranostics is a novel concept which involves the integration of diagnosis and therapy in a single platform using nanomaterials.