MURRYSVILLE, Pa. Respironics on Friday announced a definitive merger agreement with Royal Philips Electronics, which will commence a tender offer to acquire all of the outstanding shares of Respironics for $66 per share, or a total purchase price of approximately $5.1 billion.
The offer price represents a premium of approximately 31 percent over Respironics’ average closing share price for the thirty trading days ended Dec. 20.
Respironics is a global leader in the treatment of Obstructive Sleep Apnea, a sleep disorder characterized by the repeated cessation of breathing during sleep. Additionally, the company has a leading position in noninvasive ventilation and has recently introduced new home oxygen technologies to serve the needs of respiratory impaired patients in the home.
The remainder of the company’s business is focused on the hospital channel and includes noninvasive and invasive ventilation, respiratory monitoring, neonatal products and respiratory drug delivery technologies for the treatment of respiratory diseases.
Upon closing, Respironics will become the headquarters for Philips Home Healthcare Solutions group within Philips Healthcare, and Respironics’ senior operating leadership are expected to remain with the organization and will continue to lead and manage the business.
“The transaction we are announcing today will deliver superior and certain value to Respironics’ shareholders,” stated John Miclot, president and chief executive officer of Respironics. “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.”
Upon completion of this acquisition, Respironics will become the centerpiece of Home Healthcare Solutions, which will form part of Philips Healthcare as of Jan. 1.