By Lisa Kerner
Charlotte, N.C., Dec. 21 - Respironics, Inc. agreed to be acquired by Royal Philips Electronics NV in a $66-per-share tender offer.
The offer is expected to begin by Jan. 8, with the transaction slated to close in the first quarter of 2008.
Total value of the deal is about $5.1 billion.
The board of directors of Respironics approved the agreement and recommends its shareholders tender their shares in the offer.
Respironics will become the headquarters for the Philips Home Healthcare Solutions group within Philips Healthcare, with Respironics' senior management expected to remain with the organization.
"The combination of Respironics and Philips will allow us to continue to provide exceptional products and services to our customers and allow Respironics to expand its leadership in the global sleep and respiratory markets," Respironics president and chief executive officer John L. Miclot said in a news release.
"Philips is the right partner to create additional growth opportunities for our company, and we believe that our organization will benefit significantly by being part of a larger, growing and dynamic organization," Miclot added.
The acquisition is part of Philips Electronics' strategy to become a leader in the high-growth sector of home health care, according to Philips Healthcare CEO Steve Rusckowski.
Respironics manufactures and distributes products and programs for the sleep and respiratory markets. The company is located in Murrysville, Pa.
Philips Electronics is an Amsterdam-based company with products and services for the health care, lighting and consumer lifestyle markets.
| Acquirer: | Royal Philips Electronics NV
|
| Target: | Respironics, Inc.
|
| Announcement date: | Dec. 21
|
| Transaction total: | $5.1 billion
|
| Price per share: | $66.00
|
| Expected closing: | First quarter of 2008
|
| Stock price of target: | Nasdaq: RESP: $53.11 on Dec. 20
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