GE Healthcare acquires BK Medical With Expansion of Ultrasound Portfolio
BK Medical, a company dedicated to advanced surgical visualization technology, will be acquired by GE
Healthcare for $1.45 billion, the two companies announced Thursday.
In addition to having offices in Boston, BK Medical also has a presence in Copenhagen, Denmark, and specializes in intraoperative imaging and surgical navigation, with the aim of giving doctors visual access inside the patient’s body during surgery. In minimally invasive and robotic surgeries, as well as during procedures in neurosurgery, abdominal surgery, and ultrasound urology, BK Medical provides the high quality imaging and navigation that are crucial to success.
By partnering with GE, the healthcare giant will expand the $3B business beyond its current diagnostic ultrasound program to include the entire range of ultrasound imaging. This acquisitions means with this acquisition, BK Medical’s Active Imaging platform can reach new audiences around the world, and the combined diagnostic imaging and surgical visualization capabilities of GE Healthcare and BK Medical will allow better decision-making across the care continuum.
BK Medical is expected to continuously grow revenue via margin expansion and free cash flow growth, GE said, forecasting “high-single-digit” returns within 5 years on its invested capital.
Regulatory agencies have not yet approved the transaction, but it is expected to close by 2022.
Kieran Murphy, President and CEO of GE Healthcare, 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.”
Brooks West, BK’s CEO and President, added:
“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. 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