China's Neusoft Medical Buys Out Philips From Joint Venture
China-based Neusoft Corporation intends to acquire Philips total shares and holdings from their joint venture, Philips and Neusoft Medical Systems Co., Ltd. (PNMS). PNMS was established by Philips and Neusoft Medical in 2004 for research and development in CT scanners, MRI, ultrasound, and X-ray equipment. Before the transaction, Philips and Neusoft held 51% and 49% equities respectively. According to the transaction Term Sheet, Neusoft Medical will become the holding company of the joint venture and will maintain operations. In addition, all intellectual property rights and knowledge assets of PNMS will be shared by both Neusoft and Philips, and approximately 100 to 150 engineers and support staff will transfer from the joint venture to Philips. Philips and Neusoft will maintain their partnership through components supply and original equipment manufacturer (OEM) supply of systems. Neusoft and Philips will hold further negotiations for the proposed transaction and signing of definitive agreements. Subsequent closing is estimated to take place before the end of 2013. Neusoft is an IT solution and service provider in China with more than 20,000 employees around the world and maintains a service network in more than 40 cities across China, as well as subsidiaries in the United States, Europe, Japan and the Middle East.