Mindray Medical Buys Zonare Medical Systems

Chinese company Mindray Medical Ltd. has completed the acquisition of Zonare Medical Systems Inc., maker of ultrasound technology for the high-end radiology segment. Zonare Medical is an American company based in Mountain View, Calif.

“We 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 our selection criteria,” said Minghe Cheng, Mindray’s co-CEO, when the deal was announced earlier this year.

The deal is valued at $101.7 million in cash. Mindray hopes to tap into Zonare’s “strong innovative R&D capability and direct sales and service network in the high-end ultrasound market.” Zonare will fit into Mindray’s medical imaging systems business segment; the company’s other two distinct business units are patient monitoring and life support and in-vitro diagnostic products.

Total 2012 revenues for Zonare were approximately $64 million. Mindray expects the deal to be slightly dilutive to its full-year 2013 and 2014 earnings.

“We are pleased to complete this acquisition, furthering Mindray’s goal of becoming a leading provider of high-quality imaging products worldwide,” said Cheng. “This transaction brings us superior technology that will ultimately accelerate the launch of our next-generation high-end ultrasound product. It also gives us immediate access to the high-end ultrasound market in countries like the United States, Canada, Scandinavia and Germany. We are optimistic about the transaction and believe we will be better positioned to serve the healthcare market on a worldwide basis for the long run.”

Mindray plans to maintain Zonare’s brand and existing operations under its current management team led by Timothy A. Marcotte, Zonare’s president and CEO.

“The deal will create a global ultrasound company that is better positioned to serve the healthcare market on a worldwide basis,” commented Marcotte. “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.”