Philips has agreed the takeover of Respironics, an American company that makes equipment to relieve sleep apnea, a condition that causes people to stop breathing during sleep.

The cash tender offer, worth $5.17 billion (£2.6 billion), accelerates the Dutch electronics firm’s drive to build a leading position in home medical technology where Philips has spent €2 billion (£1.4 billion) in two years.

Respironics makes diagnostic and therapeutic devices for patients suffering from sleep disorders.

It also makes equipment for ventilation and oxygen equipment for use in the home.

According to Philips, the worldwide market for equipment that treats respiratory disorders is worth more than $5 billion annually and is growing at a rate of 10 per cent a year.

Respironics had sales of $1.2 billion and claims a leading position in sleep apnea treatment, where the market for therapeutic equipment is growing at a rate of 17 per cent.

Gerard Kleisterlee, the chief executive of Philips, said that Respironic was an excellent fit and “another major milestone” in the company’s drive to build leading positions in the company’s three markets: healthcare, lighting and consumer lifestyle.

He said that Philips had spent €10 billion (£7.2 billion) on acquisition since 2005 and made or announced €10.2 billion in share repurchases.

The $66-a-share cash tender offer is the second medical deal for Philips this week. On Tuesday the Dutch company agreed to buy Visicu, an American medical systems and service provider.

In January 2006 it paid $750 million for Lifeline Systems, another US company, which makes emergency response devices to enable elderly people to summon assistance to their homes.

Two years ago Philips launched a big restructuring project, Vision 2010, intended to reshape the company from its position as a diverse electronics conglomerate to a company with legs in health technology, lighting equipment and consumer gadgetry.

It had been a research and technology-based group, and Mr Kleisterlee has sought to put marketing at the forefront with a focus on the consumer.

Philips is already a significant competitor in high-tech medical equipment, such as diagnostic scanners for hospitals, where it competes head-on with General Electric and Siemens.

The company has also invested heavily in equipment to enable patients to diagnose and treat conditions at home.

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