Fathering a King

In 1998, Royal Philips Electronics of the Netherlands fathered the Philips Healthcare Services group and appears determined that the son will soon become King of the medical equipment industry. This move apparently came in response to GE Medical Systems’ announcement that it planned on becoming king itself of the ultrasound industry before the year 2000. Not to be “out-royaled”, Philips from the first year began acquisition frenzy in order to expand its subsidiary’s product portfolio well beyond its initial product line, which started in 1918 with medical x-ray tubes.

At the end of Philips Healthcare Services first year, Philips Electronics added digital ultrasound systems to PHS’s portfolio by acquiring ATL Ultrasound of Washington. Only two years later, in late 2000, Philips expanded into nuclear medicine by absorbing ADAC Laboratories of California. From this on, Philips Healthcare Services has been driven with its goal to become the King of the Medical Equipments.