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Summary
- A 15-year long contract has been signed by both the parties for a financial consideration of EUR 140 million.
- Under the agreement, Siemens will provide MFT with an installation of 350 medical equipment.
Germany-based Siemens Healthineers AG (ETR: SHL) and the Manchester University NHS Foundation Trust (MFT) have entered into a 15-year long strategic partnership on Thursday. The deal is worth around EUR 140 million ($169 million) and requires Siemens Healthineers to supply medical imaging gear to MFT for the same period.
The deal involves planning, installation, and maintenance of more than 200 critical medical equipment, with approximately 350 planned installations over the contract period. The German health tech company will also provide training and technical support to MFT users in the imaging pathway. Siemens’ collaboration with MFT is a value partnership that forms a part of its strategy. The long-term relationship secures sales contracts and enables healthcare providers to advance innovation, expand capabilities, and optimize operations.
(Source - © Kalkine Group 2021)
Catherine Walsh, Divisional Director of Imaging at MFT, said that the partnership will enable MFT to focus in delivering the best experience to its patients, while helping in attracting and retaining leading talent to discover their full potential.
The modern medical equipment to be provided by Siemens has been designed to improve patient care and meet the growing demand for imaging. The smooth functioning of the technology will be ensured by the dedicated on-site team and a single point of contact for all technology-related issues will result in easing of the administrative processes for MFT.
The financial planning security over the contract period, along with increased availability of its technology fleet, will prove beneficial for MFT. The deal will help Greater Manchester and all the communities served by MFT in the transformation of care delivery. It will also prepare the staffs for future pandemics and health crisis.
In November 2020, Siemens Healthineers CEO Bernd Montag said that order intake for major long-term contracts in the FY 2020 surged to around EUR 1 billion.
Bernd Ohnesorge, President Europe, Middle East, and Africa at Siemens Healthineers, said that the medical technology company was pleased to enter the major partnership with MFT. The contract will support the transformation of care and will ensure modernisation and digitalisation of medical technology across MFT’s hospitals.
An NHS acute foundation, Manchester University NHS Foundation Trust operates nine hospitals in Greater Manchester. It has a workforce of more than 21,000 employees and is a leading provider of specialist healthcare services. Manchester University NHS Foundation Trust is the largest NHS trust in the UK, which successfully generates revenues more than £1.8 billion.
Financial Highlights
Siemens Healthineers AG recently disclosed its results for the first quarter of FY2021. The company delivered a strong performance with 13 per cent Y-o-Y growth in Q1 revenues to €3,868 million (Q1 2020: €3,587 million). The adjusted EBIT (earnings before income and taxes) also increased from €487 million in the same period previous year to €738 million for Q1 this year.
