Philips acquisition of Intermagnetics on track

September 20, 2006

Now that legal hurdles in the U.S. are cleared, the deal for Philips Medical Systems to acquire Intermagnetics General could be completed by the end of October, according to Jacques Coumans, Ph.D., vice president of MR global marketing for Philips. If the two companies keep to this schedule, Philips will exhibit coils for its premier MR scanners, all obtained from Intermagnetics’ subsidiary In Vivo, at the RSNA meeting.

Now that legal hurdles in the U.S. are cleared, the deal for Philips Medical Systems to acquire Intermagnetics General could be completed by the end of October, according to Jacques Coumans, Ph.D., vice president of MR global marketing for Philips. If the two companies keep to this schedule, Philips will exhibit coils for its premier MR scanners, all obtained from Intermagnetics' subsidiary In Vivo, at the meeting.

"We expect that high-channel-count coils for specific anatomies will be made available at the RSNA meeting for 3T and 1.5T systems," Coumans said. "We want to give each anatomy its best possible image quality and that means, in the end, that for most anatomies you needed dedicated coils."

The main driver behind the pending $1.3 billion deal is the business operation behind Intermagnetics' superconducting magnets. These magnets are now the core component of Philips' high-performance cylindrical 3T and 1.5T products, as well as its 1T open system. The coil technology owned and manufactured by In Vivo, however, figures importantly in Philips' MR strategy as the company seeks to expand clinical applications at both field strengths.

Prominently featured at the company's booth at the RSNA meeting will be images using a very high count channel coil supplied by In Vivo. Coumans described these as being from the most sophisticated application they will show.

The top Philips MR exec is cautious, however, not to raise hopes too high that the company will be able to show the coils at the meeting as part of its own offerings. Even if the deal closes when expected, Philips will have just three or four weeks to prepare before the exhibit floor opens. Coumans said the company is ready for whatever happens.

"The audience that comes to RSNA will understand that if the acquisition goes through, some of the coil technology that will be displayed in the In Vivo booth will essentially be shown as part of the Philips road map," he said.