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HARTFORD, Conn. (AP) -- Royal Philips Electronics NV, one of Europe's largest electronics makers, said Thursday it will purchase Raytel Cardiac Services, a division of Raytel Medical Corp., for $110 million. The transaction with SHL Telemedicine Ltd. is expected to close in the fourth quarter of 2007, subject to regulatory approval. Raytel, based in Windsor, Conn., will become part of Philips' Home Healthcare Solutions business group. Raytel provides home cardiac monitoring services that doctors prescribe to heart patients. Its cardiac technicians work at monitoring centers, where they analyze patient data and provide real-time information to doctors. "Patients are living longer and health care costs are rising, so we're looking for innovative and effective ways to support both patients and the health care system," said Ron Feinstein, chief executive of Philips' Home Healthcare Solutions business group. "Raytel can help us extend the cardiac care cycle into the home, which is where patients prefer to stay, and where we see opportunities for addressing health care costs as well as quality of life issues." Philips says Raytel Cardiac Services and other ancillary operations that are part of the transaction have 2007 sales of about $55 million. Dutch-based Philips announced a reorganization last month to focus on health care, lighting and consumer lifestyle divisions, and has been steadily departing markets where it doesn't hold a first or second-place position, notably divesting its mobile phone operations after being eclipsed by Nokia Corp. Philips has said its reorganization would help it more than double profitability by 2010. Its stock was trading at $44.07 Thursday, down 3 cents. On the Web:
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