I am delighted to share that today GE announced an agreement to acquire a leader in advanced surgical visualization, BK Medical, for $1.45 billion cash consideration. This acquisition will expand our current ultrasound platform in one of our best performing businesses. You can read more about the deal here.
BK Medical’s intra-operative ultrasound technology helps clinicians see inside the patient’s body in real time during surgery, gives them visual information to guide them during procedures and help them make critical decisions. Bringing this fast-growing area together with the pre- and post-operative capabilities in GE Healthcare’s $3 billion Ultrasound business creates a compelling customer offering across the full continuum of care—from diagnostics through surgical and therapeutic interventions.
BK Medical is delivering double-digit revenue growth and margins have improved significantly. We expect these positive trends to continue under GE’s ownership and GE Healthcare’s Ultrasound management team. This transaction is expected to create value by further strengthening BK Medical, including through significant synergies with the benefit of GE’s technology and commercial scale. This transaction enables BK Medical’s Active Imaging platform to reach new customers and new markets around the world, and the combination of GE Healthcare’s diagnostic imaging technology with BK’s ability to enable decision-making and surgical visualization in intervention will allow better decision-making and patient outcomes throughout the care continuum.
Given BK Medical’s strong growth and solid returns plus synergies, we expect returns to deliver accretion at very attractive levels, including high-single-digit ROIC by year 5, demonstrating the value-creating power of this business combination.
As Kieran Murphy, President and CEO of GE Healthcare, said this morning, “Ultrasound today forms an integral part of many care pathways, and BK Medical is a strategic and highly complementary addition to our growing and profitable Ultrasound business. This transaction helps GE Healthcare continue to expand beyond diagnostics into surgical and therapeutic interventions, simplifying decision-making for clinicians and equipping them with greater insights to deliver faster, more personalized care for their patients—representing another step toward delivering precision health.”