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Royal Philips Electronics NV (PHIA.AE) said Monday that it has acquired Canada-based Traxtal Inc., a medical technology company in the field of minimally invasive instruments and software for image-guided intervention and therapy.

Philips didn't provide any financial details on the takeover, but said it expects that the global market for image guided navigation will reach US$600 million by 2015.

Traxtal's navigation solution functions as a GPS for medical instruments, designed to make interventional radiology procedures more accurate while aiming to reduce contrast, radiation dose and interventional time.

Toronto based Traxtal was founded in 1996 and has 45 employees.

Philips has had a partnership with Traxtal since 2006. Traxtal will become part of Philips' Ultrasound business within the health-care division. The Ultrasound business represents about US$1 billion in sales per year for Philips.

"The acquisition of Traxtal brings Philips the leading market position in this fast growing business," General Manager Anne LeGrand of Philips Healthcare told Dow Jones Newswires.

"We can now integrate the specific knowledge and experience of Traxtal with our huge Philips medical research and development centers. We will work together to further develop this technology," LeGrand said.

She added that the new technology helps a growing number of patients worldwide "in a more comfortable way and with less risks."

LeGrand said that the acquired company will stay in Toronto, where Philips has its Canadian headquarters. She said she expects the number of jobs will grow in the coming years.

It is a "small" acquisition that fits in a series of similar small acquisitions in the past years, an analyst from Theodoor Gilissen said. He said this is part of Philips' strategy to expand market share and product ranges of its health-care division. Analyst maintains a buy rating and EUR16 target price.

At 1400 GMT, Philips shares were up 3.8% to EUR14.29.

Company Web Site: www.philips.com

- By Bart Koster; Dow Jones Newswires; +31 20 571 5201; bart.koster@dowjones.com