TomTec has been acquired by Royal Philips

Corporate Finance case study

Client: 

TomTec Imaging Systems GmbH

Solution: 

Corporate Finance

Services:

Financial advisory

Overview

Founded in 1990, TOMTEC is a worldwide leader in Diagnostic Medical Imaging software solutions. 

With a focus on cardiology, TOMTEC provides a state of the art software solution leveraging machine learning for image analysis to hospitals and cardiologists all over the world. 

Challenge

The shareholders of TOMTEC were nearing retirement and were seeking a strategic partner with deep industry expertise, strong market presence and a suitable financial profile to support the next stage of growth and product evolution. 

With the core management team still in place, the company was seeking a partner to help it realize its strategic growth objectives, including its evolution to a SaaS-based AI platform for clinical decision support. 

Solution

The Corporate Finance team in Toronto had previously advised on the sale of a similar company, and as a result was referred to the shareholders of TOMTEC to assist with their pursuit of a strategic acquirer.  

Working closely with the PwC team in Germany, the combined Corporate Finance teams ran a robust M&A process, carefully screening potential buyers based on strategic fit, ability to execute on the company’s growth plans and cultural compatibility with TOMTEC.  

Since TOMTEC had existing partnerships in place with major health care IT providers, a carefully defined market approach was paramount to preserving confidentiality and minimizing disruption to the business.  

The company received several offers from a variety of strategic players, and ultimately, Royal Philips stood out as the best partner to realize the next level of growth for the company. 

Result

TOMTEC’s product portfolio is a highly complementary addition to Royal Philips’ strengths in ultrasound image quality. This acquisition provides a crucial competitive advantage in a rapidly consolidating industry where top players are racing to own the entire value chain and provide a complete end-to-end solution.  

PwC ran a highly competitive process, resulting in a deal value that greatly exceeded expectations of the shareholders and tripled valuation from previous attempts to sell the business.  

Let’s get to work

To learn more about our Corporate Finance services and how we can help your organization, please contact:

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Shivalika Handa
Vice President, PwC Canada
Tel: +1 416 687 8716
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Nitin Kaushal
Managing Director, Corporate Finance, PwC Canada
Tel: +1 416 687 8269
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