Siemens snatches up Pennsylvania ultrasound imaging startup
Siemens Healthcare is snatching up a Pennsylvania startup that makes ultrasound imaging systems, but is being silent about many of the juicy details.
Plans call for the division of German conglomerate Siemens ($SI) to purchase Penrith of Plymouth Meeting, PA, and close the deal in September. A Siemens spokesman told FierceMedicalDevices via email that the company would not disclose the purchase price, but reaffirmed that it is "acquiring all assets of this company."
Siemens, in its announcement, also said it will add Penrith's "highly experienced ultrasound employees" to the overall company, so we know the deal doesn't just involve acquiring intellectual property. In fact, Siemens plans to keep Penrith head Michael Cannon once the deal closes, and he'll become a vice president and general manager for point-of-care products in Siemens' ultrasound division.
By acquiring Penrith, which debuted in 2005, according to Bloomberg, Siemens stays the course with its strategic plan focused on boosting its healthcare division's product line and competitiveness. And imaging products are a big part of the division's revenue and growth. Just last month, for example, Siemens Healthcare won FDA clearance for its Magnetom Spectra 3 Tesla MRI system, which is designed to boost imaging quality and scan times but also be more cost-effective.
The purchase also reflects another new reality: Growing through acquisition of smaller startups has become a cost-effective approach to innovate, rather than pursuing development work solely in-house. Penrith, according to the deal announcement, focuses on the "miniaturization of ultrasound devices." That specialty is something that Cannon, in a statement, said will be valuable in boosting "Siemens' ability to develop pioneering technologies" that help expand the use of ultrasound in medicine.