DSCP-Bingo for the other half. :+ ). Very specialized business left. Now if they can attract a buyer for the rest. Maybe why the directors added shares of late through options exercise.
UPDATE 2-China's Mindray buys Datascope unit for $202 mln
Tue Mar 11, 2008 10:57am EDT
By Kirby Chien
BEIJING, March 11 (Reuters) - China's top maker of medical devices, Mindray Medical (MR.N: Quote, Profile, Research), said it agreed to buy Datascope Corp's (DSCP.O: Quote, Profile, Research) patient monitoring business for $202 million in cash to help it expand in the United States and Europe.
Mindray Medical International Ltd has sought acquisitions outside China for some time to increase its global presence.
Li Xiting, president and co-chief executive of Mindray, said the deal would leverage the firm's research and development and Datascope's strong U.S.-based direct sales and service network.
The deal is expected to contribute positively to Mindray's financial position in 2009 and be completed in the second quarter of 2008, pending approval from the U.S. government.
"This is very important for our business expansion in Europe and the U.S.," Li told Reuters in a telephone interview after the deal was announced. "It will transform Mindray from a largely China-based company into a global leader".
Mindray will keep the management team at the Datascope Corp (DSCP.O: Quote, Profile, Research) unit largely intact, as the two firms have cooperated for five years and know each other well, said Li.
"This is a very good fit," he said from Mindray's headquarters in Shenzhen, in southern China near Hong Kong. Continued...
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UPDATE 2-China's Mindray buys Datascope unit for $202 mln
Tue Mar 11, 2008 10:57am EDT
Mindray said the deal would add to its earnings per share on a non-GAAP basis starting in 2009, and provide cross-selling opportunities for its medical imaging systems.
The combined business will offer over 50 products across its three segments -- patient monitoring and life support products, in-vitro diagnostic products and medical imaging systems.
While the acquisition has been approved by boards' of both Datascope and Mindray, it must still pass the scrutiny of the Committee on Foreign Investment in the United States (CFIUS).
Bain Capital Partners and China's Huawei Technologies Co Ltd's [HWT.UL] failed to win CFIUS approval for their $2.2 billion acquisition of U.S. network equipment maker 3Com Corp (COMS.O: Quote, Profile, Research) last month due to national security questions.
Huawei's secretive founder Ren Zhengfei, and his background as a former People's Liberation Army soldier and continued ties to China's military establishment, weighed on the deal.
"We do not see any obstacles for approval by CFIUS," said Li.
Datascope Corp (DSCP.O: Quote, Profile, Research) said the deal would produce net cash proceeds of about $185 million after taxes and expenses, while its earnings per share in fiscal 2009 will be essentially unchanged as a result of deal.
The unit had total revenues of $161.3 million in calendar year 2007, approximately the same as those generated from Mindray's home China market. (Additional reporting by Esha Dey in Bangalore) (Editing by Mike Elliott and Vinu Pilakkott))
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