GE buys BK Medical to expand ultrasound operation
GE has agreed to buy BK Medical from its private equity owners for $1.45bn in cash to expand its healthcare division's ultrasound operation.
The US conglomerate said BK, owned by Altaris Capital Partners, is an innovator in technology that guides surgeons during minimally invasive and robotic procedures. Its products also enable surgeons to view deep tissue during operations in neuro and abdominal surgery and in ultrasound urology.
BK has headquarters in Boston and Copenhagen with more than 650 employees and achieves double-digit revenue growth.
GE Healthcare Chief Executive 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."
The companies said the deal would allow BK to reach new customers and markets and to achieve rapid revenue growth, wider margins and increased free cash flow. GE said it expected a high single-digit return on invested capital after five years.
BK's Chief Executive Brooks West said: "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."