Philips to Buy Lifeline Systems

The deal is valued at $750 million.
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Philips Electronics

(PHG) - Get Report

of the Netherlands agreed to buy

Lifeline Systems

(LIFE) - Get Report

in a $750 million deal that values the provider of personal-emergency response services at $47.75 a share.

Shares of Lifeline were jumping $7.48, or 18.9%, to $46.97. The stock has traded in a 52-week range of $24.75 to $40.16. Electronics giant Philips saw its shares add 14 cents to $31.57.

Lifeline's revenue in 2005 is estimated at $150 million. The company markets its services through a network of more than 2,500 hospitals and other health-care providers.

The company offers a 24-hour-a-day service and maintains a system designed to let its members contact a monitoring center if they need help. Lifeline, based in Framingham, Mass., has about 470,000 subscribers.

"The acquisition of Lifeline is an important step on our roadmap for growth in health care," said Gerard Kleisterlee, president and chief executive of Philips Electronics. "By targeting seniors and other people who want to continue living independently and exerting more control over their health and lifestyle, we aim to become a global player in the evolving home health-care market."