Bulletin: Philips's Debt Headroom Can Absorb The Impact Of The Proposed BioTelemetry Acquisition

LONDON (S&P Global Ratings) Dec. 18, 2020--S&P Global Ratings said today that Netherland-based health technology and consumer products group Koninklijke Philips N.V. (BBB+/Stable/A-2) can acquire U.S.-based BioTelemetry, Inc. for approximately €2.3 billion without materially altering its debt metrics. Based on our assumption that the transaction will be financed with cash, we estimate an increase in S&P Global Ratings-adjusted leverage but to no more than 2.5x in 2021. This is still below the 3.0x we view as commensurate with the current rating on Philips. The BioTelemetry deal is aligned with Philip's strategy, in our view. BioTelemetry primarily focuses on the diagnosis and monitoring of heart rhythm disorders, with offering including wearable heart monitors, AI-based data analytics, and services for over one

...December 18, 2020 LONDON (S&P Global Ratings) Dec. 18, 2020--S&P Global Ratings said today that Netherland-based health technology and consumer products group Koninklijke Philips N.V. (###+/Stable/A-2) can acquire U.S.-based BioTelemetry, Inc. for approximately 2.3 billion without materially altering its debt metrics. Based on our assumption that the transaction will be financed with cash, we estimate an increase in S&P Global Ratings-adjusted leverage but to no more than 2.5x in 2021. This is still below the 3.0x we view as commensurate with the current rating on Philips. The BioTelemetry deal is aligned with Philip's strategy, in our view. BioTelemetry primarily focuses on the diagnosis and monitoring of heart rhythm disorders, with offering including wearable heart monitors, AI-based data analytics, and services for over one million patients per year. This lines up with Philips' plans to be a leading provider of patient care management solutions for the hospital and the home. We also...

Bulletin