Chinese medical equipment manufacturer Neusoft Medical Systems has inked a term sheet to acquire the 51% stake held by Philips in their Philips Neusoft Medical Systems (PNMS) joint venture.
Financial terms of the deal were not disclosed, but all intellectual property rights from the joint venture will be shared by both companies. In addition, a team of approximately 100 to 150 CT system and component engineers and supporting staff will transfer from the joint venture to Philips.
Jointly established by Neusoft and Philips in 2004 with a registered capital of $29.6 million, PNMS focused on research and development and production of medical systems such as CT, MRI, ultrasound, and x-ray that were branded by both firms and commercialized via their respective marketing networks. Its product portfolio included four categories, 10 series, and 20 models, with 17 U.S. Food and Drug Administration (FDA) certificates and 17 European CE Marks, according to the company.
The joint venture had fulfilled its mission over the past years, and its successful performance has built a foundation for both sides to further optimize their respective global deployment and improve their competiveness, according to Neusoft.
After the buyout, the companies will be able to develop products based on their previous achievements in a more flexible manner in line with their respective strategies, which will further support their long-term strategic targets, Neusoft said.
Neusoft and Philips plan to hold further negotiations on the proposed transaction, with signing of definitive agreements and subsequent closing estimated to take place before the end of 2013.
