China’s Mindray Medical to acquire Zonare Medical for $105m

13 June 2013 (Last Updated June 13th, 2013 18:30)

China-based medical devices developer Mindray Medical International has signed a definitive agreement to acquire the US-based Zonare Medical Systems for $105m.

China-based medical devices developer Mindray Medical International has signed a definitive agreement to acquire the US-based Zonare Medical Systems for $105m.

The acquisition is desigined to improve Mindray's high-end ultrasound research and development, as well as its US sales capabilities.

Zonare, which posted revenues of approximately $64m in 2012, is a provider of ultrasound technology and high-end radiology products with a strong presence in the US, Canada, Scandinavia and Germany.

Mindray co-CEO Minghe Cheng said; "This transaction will create significant synergies by combining Zonare's strong innovative R&D capability and direct sales and service network in the high-end ultrasound market with Mindray's efficient engineering and production platforms.

"We expect customers to benefit from the combined company's expanded portfolio and improved ability to develop more innovative and customised products."

"The acquisition is desigined to improve Mindray's high-end ultrasound research and development, as well as its US sales capabilities."

Mindray will retain Zonare's brand and existing operations under its current management team, led by president and CEO Timothy Marcotte.

Marcotte said that the deal will create a global ultrasound company that is better positioned to serve the healthcare market on a worldwide basis.

"Moreover, as a member of the growing Mindray organisation, we look forward to developing even more exciting products and technologies in the future by leveraging our combined strengths," said Marcotte.

Mindray will fund the final acquisition with existing cash and planned third-party borrowings, and expects the deal to be slightly dilutive to its full-year 2013 and 2014 earnings.

The transaction, which is subject to regulatory approvals, is expected to close in the third quarter of 2013.