GE Healthcare’s ultrasound portfolio became a lot more diverse last week with its acquisition of surgical ultrasound company BK Medical. Here’s some details and perspectives:
The Acquisition – GE Healthcare will acquire BK Medical from Altaris Capital Partners for $1.45b, separating BK Medical from Analogic. That’s a pretty big investment considering that GE’s ultrasound unit brings in $3b a year.
GE’s Surgical Expansion – With BK Medical, GE’s ultrasound unit expands from diagnostics to intraoperative imaging and surgical navigation, which is reportedly a fast-growing and high-margin business for BK Medical.
The BK Portfolio – BK Medical got its start in urology ultrasound, and more recently expanded to ultrasound systems used to guide minimally invasive and robotic surgeries and to visualize deep tissue during neuro and abdominal surgeries. That adds up to five unique ultrasound systems.
GE Impact – GE sees a lot of value in BK Medical. BK gives GE an ultrasound portfolio that the other OEMs can’t match (diagnostic, surgical, post-operative), “accelerates” GE’s precision health strategy, and will reportedly deliver “high-single-digit” ROI within five years.
GE Acquisition Trend – While GE Healthcare spent 2018 and 2019 selling major non-imaging businesses (value-based care to Veritas Capital, life sciences to Danaher), GE’s 2020 and 2021 acquisitions have focused on expanding its capabilities within imaging (Zionexa for radiopharmaceuticals, Prismatic Sensors for CT detectors, and now BK Medical for ultrasound). That says a lot about GE Healthcare’s imaging focus, and is quite different from Philips and Siemens, which have increasingly targeted M&A outside of imaging.