The parent of Philips Healthcare is said to be working with Bank of America in looking to acquire medical device companies, as it seeks to expand its medical business, according to an article from Bloomberg.
The story quoted unnamed sources as indicating that Philips would consider smaller acquisitions as well as deals worth billions of euros over the next six to 12 months. Shares of Swedish radiation therapy firm Elekta have surged on speculation that the company could be an acquisition target, according to the article.
Bloomberg reported that Philips could get access to additional funds through activities such as a spin-off of its lighting division. Philips has said it plans to spin out the unit in an initial public offering, but it may retain a significant stake in the business, according to news reports.
