Datascope will retain approximately $38 million of receivables generated by the patient monitoring business. The transaction has been approved by the Datascope and Mindray boards of directors and is expected to close, subject to regulatory and other customary closing conditions, in the second quarter of 2008.
Upon closing, the combined business will offer over 50 products across Mindray’s three product segments. Mindray will benefit from Datascope’s patient monitoring product pipeline as well as its existing innovative, wireless monitoring solution, NetGuard, for detecting unexpected cardiac events in previously unmonitored patients which recently received FDA approval. The combined business will benefit from manufacturing synergies derived from Mindray’s China-based component sourcing. Upon completion of the transaction, Mindray will have approximately 4,100 employees.
The company plans to maintain Datascope’s existing branded product lines and to continue manufacturing Datascope products in the US. David Gibson, Datascope’s vice president and president, patient monitoring division & technology services division, will serve as the president of Mindray’s Datascope patient monitoring business unit upon completion of the transaction.
Xu Hang, chairman and co-CEO of Mindray, said: “This transaction represents a unique combination of strengths that will help transform Mindray from a largely China-based company into a global leader, and substantially further our strategy of building a leading on-the-ground presence in the US and Europe.”