Shenzhen Mindray Bio-Medical Electronics is planning to acquire a controlling stake in APT Medical, a move that will significantly expand its footprint in the cardiovascular disease-related medical device sector, reported Reuters.
The 6.65bn yuan ($927m) transaction will see Mindray’s wholly owned subsidiary become the controlling shareholder of APT Medical.
Mindray’s subsidiary will purchase a 21.12% stake in APT Medical from existing shareholders, including funds linked to Qiming Venture, reported the news agency citing Mindray’s filing with the Shenzhen stock exchange.
The deal also includes a 1.3m yuan payment to acquire a general partner interest of 0.12% in Zhuhai Tongsheng, an investment fund with a 3.49% stake in APT Medical.
Mindray will own a limited partner interest of 99.88% in the fund.
The stake purchase values each APT Medical share at a 30.67% premium over the last closing price on 26 January 2024.
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APT Medical specialises in catheters for electrophysiology and sheaths for invasive treatments of peripheral blood vessel blockages.
The entire transaction places the company’s valuation at 30.2bn yuan.
APT Medical aims to leverage Mindray’s extensive overseas sales network, which includes more than 50 subsidiaries outside China, to boost its modest 11% revenue from international markets in 2022.
Mindray, which currently lacks in-house products in APT Medical’s niche areas, has previously made significant acquisitions, including the €545m purchase of Finland’s HyTest Invest Oy in 2021.
Last year, Mindray introduced new defibrillation solutions, the BeneHeart D60 and D30, to raise the standards for resuscitation.
The next-generation BeneHeart defibrillators offer reliability, expert diagnosis and monitoring tools to launch a whole-process quality improvement solution for in-hospital and pre-hospital rescue.