Royal Philips Electronics NV said Wednesday it will buy ATL Ultrasound Inc. of Bothell, Wash., for about $800 million, as Europe’s biggest electronics company moves to boost its presence in the U.S. medical equipment market.
The Dutch company said it will offer $50.50 a share for ATL, which has 15 percent of the global $2.5 billion-a-year market for ultrasound equipment. ATL competes with Acuson Corp. and Hewlett-Packard Co., as well as Toshiba Corp. and Siemens AG.
Philips, one of the top makers of medical diagnostic equipment, will benefit from ATL’s strong position in the United States and Europe. The marriage will help both companies market their products as the industry consolidates.
“Despite the fact that ATL probably has the best product out there, the marketing and distribution was becoming more difficult because of bigger competitors and the increasing influence of the large hospital buying groups,” said Piper Jaffray analyst Robert Toomey.
The Philips bid offered a premium of 21 percent to ATL’s close Tuesday of $42.06. ATL shares jumped $7.94, to $50, Wednesday.
