Connect America Acquires Philips Aging and Caregiving Business
Combined Business Will Service an Expanded Customer Base of PERS and Senior Living Subscribers
and Healthcare Providers with Innovative Technologies in Connected Care across the U.S. and Canada
Bala Cynwyd, PA – May 5, 2021 -- Connect America, LLC, an innovator in connected health solutions, announced today that it has signed a definitive agreement to acquire the Aging and Caregiving business from Royal Philips (NYSE: PHG), which will include the company's Lifeline Medical Alert. Detroit-based Rockbridge Growth Equity remains the lead investor and will continue to provide strategic support for Connect America.
Financial terms of the deal were not disclosed, though it was announced that Philips will maintain an equity stake in the company. Royal Philips Electronics of the Netherlands acquired Lifeline in early 2006 for $750 million. The two companies will continue to operate fully independently and competitively until the deal closes, expected within the next few weeks, pending regulatory approvals. We spoke with Connect America CEO Janet Dillione to learn more.
"We are tremendously excited about working with the talent at Philips Lifeline," she told us. "There are multiple synergies between the two companies that will give us opportunities to develop more and more technology innovations. Philips also has substantial regional coverage that we have not done before."
She said that it will take a few weeks to finalize the deal, not only while awaiting regulatory approval by both the U.S. and Canada but also to figure out the best way to sever Lifeline from Philips' larger post-acute sector. Telehealth and telemedicine products and services, which Connect America also has, will remain with Philips. "There is complementary talent in both companies," she explained, "Lifeline comes with its own 24/7 call center and our PERS product offers a call center through a partner, so there will be some decisions made."
About the Companies
Philips' ACG business offers the Lifeline Personal Emergency Response System as well as "Senior Living Solutions," a communication platform that provides 24/7 access to trained care specialists and digital solutions that help caregivers stay connected with patient, family, physicians, and each other.
Headquartered in Bala Cynwyd, Pa., Connect America is an independent provider of medical alert systems in North America, helping improve access to care, safety, independence, and quality of life. Its growing portfolio of medical alert systems, remote patient monitoring, and medication management solutions help bridge the gap between individuals and their health partners, providing a more connected health experience. With the addition of the ACG business, Connect America will further its services to stakeholders in the PERS market in both consumer and healthcare segments.
For more than 40 years, the company and its wholly owned subsidiaries have been delivering value-based solutions, committed to ensuring that every individual, patient, and provider receives the right care at the right time.
Executive Comments
"Connect America and Philips ACG’s shared commitment to supporting the aging journey for our subscribers and caregivers, as well as our highly complementary offerings make this acquisition a very exciting opportunity to expand our impact and better serve our subscribers," said Janet Dillione, CEO, Connect America. "Philips ACG has been an experienced provider of digital caregiving, monitoring, and senior living solutions for more than 35 years, offering a connected data-driven ecosystem to customers across North America. Together as one team, we will deliver an unmatched, state-of-the-art health management platform."
"Both Philips ACG, with its Lifeline Personal Emergency Response services, and Connect America have a rich history of innovation and delivering customer value. Our joining forces will bring two market innovators together to provide exciting new opportunities for our employees, subscribers, and healthcare network partners," said Derek Ross, business leader of Philips ACG.
"Connect America's mission is to help to address some of the most serious challenges facing patients and providers. Acquiring Philips' ACG business will allow us to expand our ability to serve our subscribers and partners by bringing additional connected care products and services to individuals and caregivers throughout North America," said Richard Brooks, President, Connect America Healthcare. "Philips ACG subscribers and providers will benefit from our web-based platform that enables clinicians to better manage chronic conditions and educates individuals on how to better monitor their own health."
"This acquisition solidifies Connect America's position in shaping the future of the connected health space and the innovative, value-added solutions that can be delivered to our customers. We are excited for the opportunity to grow our technology offerings and expand our geographic coverage in both the U.S. and Canadian markets," added Dillione.
©2021 by Rowan Consulting Associates, Inc., Colorado Springs, CO. All rights reserved. This article originally appeared in Home Care Technology: The Rowan Report. homecaretechreport.com One copy may be printed for personal use; further reproduction by permission only. editor@homecaretechreport.com