Philips Moving North American HQ To Cambridge Crossing

CAMBRIDGE, MA – International healthcare company Philips will move its North American headquarters from Andover to Cambridge Crossing in 2020, city officials in Somerville and Cambridge announced Thursday. The Dutch company will lease 243,000 square feet of space at the 45-acre development, located where Cambridge, Somerville and Boston converge.

Philips' office at 250 North St., which straddles the Cambridge and Somerville city line, will be home to more than 2,000 employees. Both cities will collaborate to help the company transition to the area.

"We are excited to welcome Philips’ innovations and commercial division to our vibrant life sciences community," Cambridge City Manager Louis A. DePasquale said in a statement. "Cambridge is home to more than 400 life science companies, and our commercial tax rates continue to be one of the lowest of any city in the state. We look forward to working with the Philips employees, the City of Somerville, and the Commonwealth to support the company’s transition into their new home in Cambridge Crossing."

The Cambridge Crossing master plan, developed by an affiliate of DivcoWest, will create a new mixed-use neighborhood and include investments in green space and public transit improvements such as the Green Line Extension project. The development's proximity to the area's technology marketplace and employment pool, research facilities, hospitals and academic institutions drove Philips' decision to relocate.

"This move will enhance our ability to collaborate with existing academic partners and customers," Dr. Joe Frassica, chief medical officer and head of research for Philips North America, said in a statement. "In addition, we will be better able to expand our work with the amazing Cambridge and Boston Healthcare innovation and start-up community that will help us to co-create the solutions needed to drive real change in the healthcare industry.  These collaborations will be crucial to our ability to advance our ongoing innovation in areas such as artificial intelligence, genomics, infectious disease, healthcare informatics, imaged guided therapy, robotics, natural language processing, and population health."

Somerville and Cambridge are both members of the Life Sciences Corridor, a network of five neighboring communities that host more than 700 life science and biotech companies along the MBTA's Red Line, which officials hope will bring further growth to the region.

In addition to the 2,000 jobs and new commercial tax revenue that Philips will bring to Cambridge and Somerville, the latter will also benefit from payments from DivcoWest for jobs linkage to support job training and other workforce development efforts, and for housing linkage to support the creation of affordable housing.

Cambridge Crossing's master plan also includes a recently approved 450,000-square-foot science and technology building in Somerville.

"Philips North America’s decision to move to Cambridge Crossing right next to the relocated Lechmere T-stop – the first of seven new Green Line stations to come – is a great example of the strength of a regional approach to development and our shared commitment to a Smart Growth strategy for our cities," Somerville Mayor Joseph Curtatone said in a release. "Philips is one of the most respected brands in the health technology industry. We are extremely proud to welcome them to our vibrant and diverse community and introduce them to our deeply talented, highly knowledgeable, and innovative resident workforce."

Philips office in Amsterdam, Netherlands (AP Photo/Peter Dejong, File)