Medical equipment manufacturer Mindray Medical International is vying to expand its ultrasound presence, inking a deal to purchase ultrasound technology developer Zonare Medical Systems for $105 million.
The Shenzhen, China-based vendor said it expects the deal will strengthen its high-end ultrasound R&D and U.S. sales capabilities. The acquisition would combine Zonare's R&D capability and direct sales and service network in the high-end ultrasound market with Mindray's engineering and production platforms, Mindray co-CEO Minghe Cheng said in a statement.
Zonare has a direct sales team that mainly covers developed markets such as the U.S., Canada, Scandinavia, and Germany. Mindray said it plans to maintain Zonare's brand and existing operations under its current management team led by president and CEO Timothy Marcotte.
Zonare produced $64 million in revenues in 2012, and Mindray anticipates the deal will be slightly dilutive to its full-year 2013 and 2014 earnings. The acquisition is expected to close in the third quarter and is subject to regulatory and other customary closing conditions.
The final purchase price is also subject to working capital and other adjustments. It will be funded with Mindray's existing cash and planned borrowings from third parties, according to the company.
