Mindray Medical International Limited, a Chinese medical device manufacturer, has reached an agreement to acquire Datascope Corp.’s patient monitoring business. Upon the completion of this acquisition, Mindray will be the third-largest player in the global patient monitoring device industry.
Under the terms of this agreement, Mindray will pay Datascope $202 million in cash, plus Datascope retains approximately $38 million of receivables generated by the patient monitoring business. The agreement gives Mindray rights to the Datascope brand until 2015. This 8-year access to the Datascope brand will provide Mindray, which has already captured the majority of the Chinese patient monitoring market in both unit volume and revenue, with easier entry into the North American and European markets.
Mindray’s strategic advantages have come from efficient China-based component sourcing, as well as the company’s strong research and development efforts. However, Datascope has more advanced products in anesthesia gas monitoring, and telemetry systems which will significantly boost the Mindray product line. The acquisition also gives Mindray access to Datascope’s software solutions and distribution network. These elements will give the combined company a more competitive advantage in specific segments of the US patient montoring market, such as ambulatory surgery centers, the hospital anesthesia market and the vital signs monitoring market.
Upon completion of the transaction, Mindray will have approximately 4,100 employees.
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