Mindray to Acquire Zonare for $105 Million
Chinese medical device manufacturer Mindray Medical International Limited will expand its U.S. presence with the acquisition of the Mountain View, Calif., ultrasound technology company ZONARE Medical Systems, Inc. According to the press release, Mindray’s management “expects the deal to strengthen its high-end ultrasound R&D and U.S. sales capabilities.” Mindray also gave a heads up to investors that buying Zonare for $105 million will of course lower its full-year 2013 and 2014 earnings a bit. Zonare is a 14-year-old company that had total 2012 revenues of $64 million and a sales presence in the United States, Canada, Scandinavia and Germany. It is best known for its ZONE-Sonography technology that improves ultrasound image quality. "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-Chief Executive Officer in the press release. Mindray plans to maintain ZONARE's brand and existing operations under its current management team led by Timothy A. Marcotte, ZONARE's President and Chief Executive Officer. The company expect to close the deal in the third quarter of 2013 and will fund the acquisition with its existing cash and planned loans.