Skanray Technologies Acquires Italian X-ray Tube Manufacturer CEI

India-based medical device company Skanray Technologies Pvt. Ltd., a medical equipment manufacturing company, is expanding into Europe by acquiring Bologna based CEI-Italy (Compagnia Elettronica Italiana), an X-ray tube manufacturer.

The acquisition follows the creation of Skanray’s European R&D unit late last year. The move potentially could make the company one of the first Indian medical device makers to go global with overseas manufacturing operations.

The deal includes the transfer of CEI’s manufacturing unit, the technology and its people.

Skanrays’ European R&D center and manufacturing unit at Bologna, Italy, will manufacture medical devices for the European Union  and North America OEM market. It also will work on advanced technologies in the imaging and monitoring product space – mobile DR systems, portable ultrasound and telemedicine monitors. The Europe R&D center has a team of 20 scientists (India-based and global) to collaborate on product design and development.

“Establishing our R&D and manufacturing unit in international markets is a huge milestone for us and positions Skanray amongst the top global med-tech manufacturers,” said Vishwaprasad Alva, managing director and founder, Skanray Technologies. “Skanray expects the next phase of growth in medical technologies to be driven by the demand for primary healthcare solutions. Both the Italian manufacturing units will complement the India manufacturing in building world class healthcare products.”  

CEI-Italy is the company’s third acquisition in as many years. Last year it acquired the healthcare business of Coimbatore-based auto component maker Pricol Ltd., which increased its strength in the respiratory segment, with the addition of ventilators to its portfolio. In 2012 it acquired the medical equipment business of Larsen & Toubro (L&T) through its fully owned subsidiary Skanray Healthcare.

Skanray is looking at expanding both organically as well as through acquisitions. “We have a couple of acquisitions lined up of which one should be finalised before the end of this year in the space of primary and critical healthcare. However, we are still in the process of evaluation,” said Alva.

Skanray Technologies was founded in 2007 and commenced commercial production in 2011. It is a medical equipment manufacturing firm involved in radiology, critical care, patient monitoring, primary healthcare solutions and telemedicine. Today, it has operations in India, Europe and Latin America.

It has its own large installed base in India and is also an OEM partner to some of the world’s best medical equipment brands.

Last year private equity firm Ascent Capital had struck a deal to invest up to Rs 100 crore ($14.75 million) in Skanray Technologies in various capacities.

One of the personal investors in the company is Arun Kumar, promoter of public listed healthcare firm Strides Arcolab.

Other players in the industry which have also raised private equity funding in the past include medical instruments and imagining product manufacturer Trivitron Healthcare; Sutures India and BPL Medical Technologies.