Philips to spin out its lighting division to focus on connected health

Dutch conglomerate Philips has voted to split itself into two separate companies: the consumer and medtech group and a lighting group. The two divisions will still both use the Philips brand, but the goal is to eventually split the lighting division off into its own company, Philips announced Tuesday.

According to the release Philips will then take the new lighting company and, “consider various options for alternative ownership structures with direct access to capital markets.” The lighting group includes Philips’ popular Hue lights, which are a staple in many connected homes. But as the internet of things changes the business landscape, it’s clear that Philips sees the biggest advantage in the consumer and medical worlds — or more appropriately, the convergence of the two.

Philips thinks there is a 100 billion-euro-a-year opportunity represented by increasing reliance on technology that can span the hospital to the home, and it has already started with a big partnership with Salesforce.com to tie patient data from connected devices to a cloud platform accessible by medical professionals. We’ll hear more about the platform and the challenges of getting the medical and consumer worlds to converge at our Structure Connect event October 21 and 22 where Todd Pierce, the SVP of Healthcare and Life Sciences at Salesforce.com and Philippe Schwartz, the president of Withings will speak. … (Read more)

Source: GigaOm.com