GE Acquires Intraoperative Ultrasound and Surgical Visualization Company, BK Medical
GE Healthcare announced plans to acquire BK Medical from Altaris Capital Partners for a cash purchase price of $1.45 billion. BK Medical is an innovator in global intraoperative imaging and surgical navigation, used to guide clinicians during minimally invasive and robotic surgeries and to visualize deep tissue during procedures in neuro and abdominal surgery, and in ultrasound urology. BK Medical is headquartered in Boston and Copenhagen with more than 650 employees and is delivering double-digit revenue growth.
The 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, and introduce BK Medical’s Active Imaging platform to new customers and markets around the world. The combination of GE Healthcare’s diagnostic imaging technology with BK’s ability to enable decision-making and surgical visualization in intervention is expected to allow better decision-making throughout the care continuum. GE Healthcare anticipates BK Medical will deliver rapid revenue growth as well as margin expansion and free cash flow growth. GE Healthcare also expects high-single-digit return on invested capital by year five.
The parties expect the transaction to close in 2022, subject to review by the relevant regulatory authorities.
GE Healthcare President and CEO Kieran Murphy said, “Ultrasound today forms an integral part of many care pathways, and BK Medical is a strategic and highly complementary addition to our growing and protable 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.”
BK Medical President and CEO Brooks West said, “We are immensely proud of the organization and of the life-changing technology that we have built at BK Medical, and look forward to our future as part of the GE Healthcare family. Combining our expertise in intraoperative imaging and surgical navigation with GE Healthcare’s many strengths and global presence will accelerate our mission to change the standard of care in surgical interventions. Our mission to help surgeons make critical decisions using active imaging aligns well with GE Healthcare’s mission to help physicians make more informed decisions and improve patient outcomes, and we are eager to begin this new chapter.”