SHENZHEN, China, March 11 Mindray MedicalInternational Limited (NYSE: MR), today announced a definitive agreement toacquire Datascope Corp.'s (Nasdaq: DSCP) patient monitoring business, creatingupon completion the third-largest player in the global patient monitoringdevice industry and furthering the company's goal of becoming a leadingprovider of high-quality medical devices to markets worldwide. Datascope'spatient monitoring business achieved total revenues of US$161.3 million incalendar year 2007, approximately the same revenues generated from Mindray'shome China market. The transaction is expected to be accretive to Mindray'searnings per share on a non-GAAP basis starting in 2009.
Upon closing, Mindray expects to benefit from the synergies created bycombining Mindray's strong China-based engineering and production platformswith Datascope's established brands, long standing reputation for high-qualityproducts and service, its large and established direct sales and service teamin the United States and Europe and both companies' leading R&D capabilities."This transaction represents a unique combination of strengths that will helptransform Mindray from a largely China-based company into a global leader, andsubstantially further our strategy of building a leading on-the-groundpresence in the United States and Europe," said Mr. Xu Hang, Mindray'schairman and co-chief executive officer. "Datascope customers should alsobenefit from the combined company's expanded product lineup and enhancedability to tailor product functionality for specific end-user requirements,and Mindray's customers in the United States and Europe will enjoy the supportof an established direct sales and service network."
The company plans to maintain Datascope's existing branded product linesand to continue manufacturing Datascope products in the United States. DavidGibson, Datascope's vice president and president, patient monitoring division& technology services division, will serve as the president of Mindray'sDatascope patient monitoring business unit upon completion of the transaction.The existing management team is expected to continue post-closing withoutsignificant changes along with the rest of the patient monitoring divisionstaff.
Currently, the majority of Datascope's patient monitoring revenue isgenerated from sales in North America, with the remainder from markets largelyin Europe.
Mr. Li Xiting, Mindray's president and co-chief executive officercommented, "This is an exceptional fit of complementary assets in the patientmonitoring industry. Datascope's strength in direct sales to under-300 bedhospitals, its leading market share in key niche areas, and direct sales andservice team in the United States and Europe offer immediate cross-sellingopportunities for Mindray's high performance-to-price medical imaging systems.Also, by leveraging Mindray's China-based R&D, we are positioned to tailorexisting Datascope models for new markets and enhance product functionality.With our common culture of performance and dedication to meeting customerneeds, I am very optimistic for the future of the combined business."
Mr. Li noted that the combined company will enjoy leading market share inspecific sub-segments of the US patient monitoring market, such as ambulatorysurgery centers, the hospital anesthesia market and the vital signs monitoringmarket as well as significant strength in centralized monitoring systems.
Commenting on the transaction, Larry Saper, chairman and chief executiveofficer of Datascope said, "The addition of our Patient Monitoring business toMindray's business will create a global patient monitoring company betterpositioned to serve the healthcare market and compete on a worldwide basis. Weexpect our customers to continue to benefit from the high level of innovation,quality and service long associated with the Datascope brand. We thank