Royal Philips (NYSE:PHG) announced today that it agreed to acquire Capsule Technologies in a deal worth $635 million.

Andover, Mass.-based Capsule Technologies develops medical device integration and data technologies for hospitals and healthcare organizations. Its offerings include a medical device information platform for integration, vital signs monitoring and clinical surveillance services, according to a news release.

Capsule Technologies serves over 2,800 hospitals and healthcare organizations across 40 countries and, in 2020, the company pulled in sales of over $100 million, marking double-digit growth.

Amsterdam-based Philips said in the release that the acquisition fits into its strategy of transforming the delivery of care with integrated solutions as it adds to a portfolio that includes patient monitoring, therapeutics, telehealth, informatics and interoperability solutions.

In the $635 million deal, which is expected to be completed in the first quarter of 2021, Capsule and its approximately 300 employees will join Philips’ connected care segment. The company expects the acquisition to be accretive to sales growth and adjusted EBITA margin in 2021.

“Integrated patient care management solutions supported by essential real-time patient data and AI are core to our strategy to improve patient outcomes and care provider productivity by seamlessly connecting care,” Philips connected care chief business leader Roy Jakobs said in the release. “The acquisition of Capsule will further expand our patient care management offering. We look forward to integrating our strengths, adding a vendor-neutral medical device integration platform that further unlocks the power of medical device data to enhance patient monitoring and management, improve collaboration and streamline workflows in the ICU, as well as other care settings in the hospital and beyond its walls.”

“We are very excited to become part of Philips and step up on our goal of empowering clinicians with simplified workflows and timely, actionable insights,” added Capsule CEO Hemant Goel. “Together, we will be even better positioned to liberate, aggregate, analyze, and share clinical data from connected devices that will support clinicians making more informed decisions, and ultimately drive the transformation from reactive care to insight-driven, proactive care delivery.”