07.20.11
Seoul, South Korea-based Samsung Electronics Co. keeps up with the Joneses in a wide range of markets—namely home entertainment, mobile phones, and computers—and it now has taken an interest in medical equipment. According to Senior Vice President Jo Jae Moon, Samsung has begun negotiations with several companies to buy makers of magnetic resonance imaging [MRI] scanners and X-ray machines.
“We have a lot of companies on our list, and we’ve been contacting most of them,” Moon said in an interview in Seoul, South Korea, on July 15. According to Moon, Samsung would like to acquire small overseas companies with niche technology. “We’ll continue to meet them and negotiate,” Moon said. “We have a target to be number one across ultrasound devices, X-rays and MRIs.” Moon did not reveal the names of any companies.
Chairman Lee Kun Hee has said that demand for the health care equipment Samsung is interested in acquiring will continue to rise due to the increasing number of elderly residents in the United States, Europe and Japan each year. Bae Ki Dal, an analyst at Shinhan Investment Corp. in Seoul, agrees.
“Demand for expensive medical equipment will keep growing,” Dal said. “The market is mostly dominated by foreign companies now. It will be interesting to see how Samsung will compete with them.”
Moon said that Samsung will target annual sales of 10 trillion won, or $9.4 billion. The company plans to spend 1.2 trillion won, or $1.1 billion in the medical equipment business by 2020, and increase staff in its medical equipment business, which has grown from less than 10 people in 2009 to more than 200 people currently.
The company’s biggest acquisition in the industry so far occurred last year, when it purchased Prosonic from Seoul-based Consus Asset Management Co. for 331.3 billion won (approximately $312 million), as well as a controlling 43.5 percent stake in diagnostic ultrasound device maker Medison Co. (also based in Seoul). Samsung increased the stake to 65.8 percent last April.
“We have a lot of companies on our list, and we’ve been contacting most of them,” Moon said in an interview in Seoul, South Korea, on July 15. According to Moon, Samsung would like to acquire small overseas companies with niche technology. “We’ll continue to meet them and negotiate,” Moon said. “We have a target to be number one across ultrasound devices, X-rays and MRIs.” Moon did not reveal the names of any companies.
Chairman Lee Kun Hee has said that demand for the health care equipment Samsung is interested in acquiring will continue to rise due to the increasing number of elderly residents in the United States, Europe and Japan each year. Bae Ki Dal, an analyst at Shinhan Investment Corp. in Seoul, agrees.
“Demand for expensive medical equipment will keep growing,” Dal said. “The market is mostly dominated by foreign companies now. It will be interesting to see how Samsung will compete with them.”
Moon said that Samsung will target annual sales of 10 trillion won, or $9.4 billion. The company plans to spend 1.2 trillion won, or $1.1 billion in the medical equipment business by 2020, and increase staff in its medical equipment business, which has grown from less than 10 people in 2009 to more than 200 people currently.
The company’s biggest acquisition in the industry so far occurred last year, when it purchased Prosonic from Seoul-based Consus Asset Management Co. for 331.3 billion won (approximately $312 million), as well as a controlling 43.5 percent stake in diagnostic ultrasound device maker Medison Co. (also based in Seoul). Samsung increased the stake to 65.8 percent last April.