Philips 2007 Annual Report Download - page 51

Philips Annual Report 2007 57
The inclusion of Health Watch increases the number of
healthcare organizations and healthcare referral sources
in the Philips Lifeline network, further contributing to
future growth.
Raytel Cardiac Services
Philips also acquired US-based Raytel Cardiac Services, a
leading US provider of home cardiac monitoring services
that doctors prescribe to heart patients. Acquiring
Raytel Cardiac Services represents a further step in our
healthcare strategy of improving patient outcomes in
specic care cycles, such as cardiology, and builds on our
leading position in medical technologies for heart disease
(the most common cause of death in the developed
world). Philips has invested heavily over the years to
become the top supplier to hospitals of medical
equipment for managing heart disease.
Respironics
In December 2007, Philips announced the projected
acquisition of Respironics for EUR 3.6 billion, which
would be its biggest-ever acquisition. Respironics is
a global leader in the treatment of Obstructive Sleep
Apnea (OSA), a sleep disorder characterized by the
repeated cessation of breathing during sleep. Research
in recent years has shown a link between OSA, heart
disease, stroke and diabetes. Additionally, Respironics
has a leading position in non-invasive ventilation and has
recently introduced new home oxygen technologies to
serve the needs of respiratory-impaired patients in the
home. The remainder of Respironics’ business is focused
on the hospital channel and includes non-invasive and
invasive ventilation, respiratory monitoring, neonatal
products and respiratory drug delivery technologies for
the treatment of respiratory diseases. The deal adds new
product categories in OSA and home respiratory care
to our existing businesses in this eld. Respironics ts
well into Philips’ strategy to become the world leader
in the fast-growing home healthcare market.
Divestments
In the course of 2007, we sold, or decided to sell, several
of our non-core business interests. Also, we continued
to reduce our nancial holdings in cyclical businesses.
On March 31, 2007, the Company completed the sale
of its remaining Mobile Phones activities to China
Electronics Corporation (CEC). CEC has received
an exclusive license to market and sell mobile phones
under the Philips brand for the coming ve years.
On November 2, 2007, Philips announced that a
decision has been made to proceed with the sale of its
approximate 70% ownership interest in MedQuist, as the
Company considers its MedQuist ownership interest as
a non-core holding.
On December 19, 2007, Philips announced it has reached
an agreement in principle to sell its Set-Top Boxes and
Connectivity Solutions activities, currently part of its Home
Networks business unit within Consumer Electronics, to
Pace Micro Technology. After completion, Philips will
become shareholder of some 23% in the combined business.
The transaction is expected to close at February 20, 2008.
As part of a multi-phase plan to facilitate an orderly exit
from the Company’s shareholding in Taiwan
Semiconductor Manufacturing Company, Philips sold 2.8
billion common shares in TSMC in the course of 2007.
This plan, announced on March 9, 2007, aims to reduce
Philips’ holding in TSMC to zero before the end of 2010.
In line with Philips’ strategy to further reduce its holding
in LG.Philips LCD in a structured and responsible manner,
the Company sold 46.4 million shares of common stock
in LG.Philips LCD, thereby reducing its shareholding to 19.9%.
The transaction provided Philips with net proceeds of
EUR 1.5 billion.
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements