Amsterdam-headquartered tech company Koninklijke Philips N.V. has signed an acquisition agreement with cardiac imaging systems company EPD Solutions Ltd., the companies announced Tuesday.

The deal will include an upfront cash payment of 250 million euros, and additional deferred milestone-dependent payments of approximately 210 million euros. It is expected to be completed in July, subject to closing conditions.

EPD founder and chairman Shlomo Ben-Haim. Photo: EPD

EPD develops an electromagnetic cardiac imaging and navigation system for minimally invasive catheter-based procedures. The system achieved a CE Mark (EU approval) in February but is not currently available for sale in the U.S.

EPD was founded by Shlomo Ben-Haim, a serial entrepreneur in the domain of healthcare and biotech who has also held senior faculty positions in Harvard and Technion – Israel Institute of Technology. Companies founded or co-founded by Mr. Ben-Haim have totaled over $1 billion in mergers or acquisitions, the largest deal being the acquisition of Biosense Webster by Johnson & Johnson for $427 million in 1997.

EPD's technology "has the potential to address the key unmet need of real-time therapy assessment, which is one of the more significant limitations of the current standard of care," said in a statement Frans van Houten, CEO of Philips. He added that the acquisition is "consistent with our strategic plan to broaden our image-guided therapy solutions portfolio."

Philips has been reorganizing since 2014 to increasingly focus on its healthcare segment. In 2017, the company finalized the sale of 80% of its lightning business Lumileds.

“Philips’ expertise and leadership in interventional imaging and navigation is an excellent strategic fit with EPD," said in a statement Mr. Ben-Haim, who serves as EPD's chairman. "I am convinced that as part of Philips, we will be able to grow EPD and help many electrophysiologists and patients worldwide.”