Royal Philips Electronics has reached an agreement to acquire India-based Meditronics, a leading manufacturer of General X-Ray systems targeting the economy segment in India.

Upon closing of this transaction in the fourth quarter of 2008, Meditronics will become part of the Imaging Systems business within Philips’ Healthcare sector. Financial details of the deal were not disclosed.

The announcement marks Philips' growing presence in high-growth healthcare markets in emerging economies, and follows the earlier acquisitions of healthcare companies Alpha X-Ray Technologies in India, Chinese Shenzhen Goldway Industrial and Dixtal Biomédica e Tecnologia and VMI Sistemas Medicos in Brazil.

'The acquisition of Meditronics, just two months after we announced the acquisition of Alpha, highlights our accelerating efforts to expand our healthcare business in emerging markets and India in particular. This underlines our conscious decision to step up investments in these high-growth areas while also delivering on our commitment to supply affordable healthcare solutions in emerging markets,' stated Philips CEO Gerard Kleisterlee.

Meditronics' high-quality proven economy segment product portfolio complements Philips' existing high-end General X-Ray range and further strengthens Philips' leading position in India's high-growth imaging and monitoring equipment market.

Analysts estimate that the General X-Ray segment of the Indian market will show annual growth rates of 10 per cent or higher.

Philips will invest to expand sales in the local Indian market and will leverage its global distribution network to expand its offering of economy X-ray products in other emerging and, importantly, mature markets.-TradeArabia News Service