Siemens Healthineers AG has announced its acquisition of a majority stake in ECG Management Consultants, a healthcare advisory firm headquartered in San Diego, California. The deal is expected to close in the fourth quarter of 2019.
“The advisory business of ECG is a strong addition to our portfolio and a further step in the implementation of our strategy 2025,” Bernd Montag, CEO of Siemens Healthineers AG, said. “In combination with our strong medical technology portfolio including our digital platforms and solutions, the partnership with ECG will enable us to address the needs of our customers more comprehensively than ever before, helping them to further improve healthcare delivery and provide better care at lower cost.”
ECG CEO Gary Edmiston will continue to lead the firm, which will now be part of Siemens Healthineers’ global enterprise services practice. ECG will continue to operate as a standalone unit and work independently with its clients.
The firm currently employs close to 300 people – more than 200 of which are consultants – and reported revenue of more than $100 million in 2018. It offers consulting services in strategy, finance, operations, and technology to major hospitals, medical centers, health systems, healthcare payers, and other businesses and organizations operating within the industry.
“The partnership with Siemens Healthineers is a unique opportunity for ECG Management Consultants to further grow our business. We will be able to build on the deep clinical and medical knowledge of Siemens Healthineers, its digital platforms, its customer relationships and its global network,” Edmiston said. “We are excited about the joint opportunities for long-term business Value Partnerships. The partnership with Siemens Healthineers will put ECG in an even better position to continue serving our clients as a trusted advisor and helping them remain successful in a changing healthcare environment.”
The acquisition is another step forward for the “Siemens Healthineers Strategy 2025,” which aims to enter “adjacent growth markets.” Siemens Healthineers currently offers products and services in diagnostic and therapeutic imaging, as well as laboratory diagnostics and molecular medicine, with digital health services and enterprises services being actively developed. The Germany-based firm reported revenue of approximately $14.7 billion for fiscal 2018, and employs approximately 50,000 people worldwide.
“The outstanding consulting capabilities of ECG, along with our well-established customer value partnership approach, will enable us to serve hospitals and health systems on a much more comprehensive level, deepen our customer relationships in the long term, and open up a new dimension of growth opportunities,” João Seabra, head of enterprise services at Siemens Healthineers, said.