Mindray Medical International, China-based medical device company, has entered into a definitive agreement to purchase ultrasound systems developer Zonare Medical Systems for $105m.
Mindray expects the acquisition deal to strengthen its high-end ultrasound R&D and US sales capabilities, furthering its goal of becoming a leading provider of high-quality imaging products to international markets.
Zonare’s fiscal 2012 total revenues were approximately $64m. Mindray expects the deal to be slightly dilutive to its full-year 2013 and 2014 earnings.
Mindray’s co-CEO Minghe Cheng said that the company has evaluated many different acquisition targets and determined that Zonare’s proven business model, along with its technology and sales channel assets, fits very well with its selection criteria.
"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 customized products," Cheng added.
Established in 1999, Zonare is based in Mountain View, California, US, and has one of the leading ultrasound brands in high-end radiology segment.
It has a direct sales team that covers markets such as the US, Canada, Scandinavia and Germany.
Mindray plans to maintain Zonare’s brand and existing operations under its present management team led by Timothy A. Marcotte, Zonare’s president and CEO.
Marcotte noted that the deal will create a global ultrasound company that is better positioned to serve the healthcare market on a worldwide basis.
"We expect our customers to continue to benefit from the high level of innovation, quality and services provided by the ZONARE brand. Moreover, as a member of the growing Mindray organization, we look forward to developing even more exciting products and technologies in the future by leveraging our combined strengths," Marcotte added.
The deal is expected to completed in the third quarter of 2013 following the regulatory and other customary closing conditions.