Evan Vitale Consulting: Philips to Buy Blue Jay Consulting, Boost Healthcare Unit

Thursday, October 8, 2015

Philips to Buy Blue Jay Consulting, Boost Healthcare Unit – Zacks.com

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In order to expand its health care consulting services in the U.S., Koninklijke Philips N.V (PHG – Analyst Report) recently penned a deal to buy Blue Jay Consulting. Following this news, shares of the company rose marginally (0.9%) during the regular trading session on Oct 7.

Orlando, FL-based, Blue Jay Consulting is a leading supplier of consulting services to hospital emergency departments. The company has successfully attained an expertise in this domain via process improvement, coaching, comprehensive assessment and implementation of the outcome-oriented solutions. The financial terms were kept under wraps for this transaction, which is anticipated to complete in the fourth quarter of 2015.

Post acquisition completion, Blue Jay Consulting will be included in the Healthcare Informatics, Solutions and Services business of Philips. This business deals in providing various types of services comprising consulting related to hospitals and health systems, cloud-based platforms, customized clinical programs and advanced data analytics and interoperable.

The abovementioned deal underlines Philips’ ongoing efforts to boost the operational and financial performance of health systems and institutions along with increasing patient engagement. Of late, Philips has been taking significant strides to strengthen its healthcare sector across the world. Last month, the company announced the inauguration of its first HealthSuite Labs co-creation center at High Tech Campus Eindhoven in the Netherlands. This apart, the company has inked an agreement with the Netherlands-based Catharina Hospital, under which it will provide state-of-the-art medical technologies for the latter’s cardiovascular center.

We believe the latest development will pave the way for long-term growth of the company. Over the past few quarters, the company’s financials has been suffering from various issues like currency headwinds and weak macroeconomic conditions. Also, analysts’ sentiments are not in favor of Philips, with firms lowering their estimates for 2015 and 2016 by 2% and 2.4%, respectively to $1.47 and $2.03, respectively over the last 30 days. Consequently, Philips has a Zacks Rank #4 (Sell).

Better-ranked stocks in the industry include Control4 Corporation (CTRL – Snapshot Report), GigOptix, Inc. (GIG – Snapshot Report) and Kopin Corporation (KOPN – Snapshot Report). All stocks hold a Zacks Rank #2 (Buy).

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