Philips, the Dutch electronics firm, is to expand into the US market.
The electronics giant is to buy US radiation specialist Stentor for around $280m (€234m).
Stentor shareholders have already approved the merger but it is still subject to regulatory approval, Philips said.
Stentor provides systems for storing, managing and distributing digital radiology images in hospitals and healthcare institutions.
Philips said Stentor's sales were expected to grow to $50m (€41.9m) this year.
For 2006, annual sales are expected to grow by 50%.
Philips had announced in recent months that it wanted to expand its health care activities.