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news.China Medical Technologies has entered into a definitive acquisition agreement to purchase the entire equity interest in Beijing Bio-Ekon Biotechnology for $28.8 million.
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Subject to customary closing conditions, the acquisition is expected to close in January 2008. China Medical Technologies expects the acquisition to be accretive from the quarter ending March 31, 2008, resulting in increases in the company’s revenues and adjusted non-GAAP net income.
The company believes that the market potential of certain types of Beijing Bio-Ekon Biotechnology’s (BBE) new reagents is very promising. BBE holds the Chinese patents for the MAIA minute magnetic beads, which are important for the production of its fully automatic ECLIA analyzer.
Xiaodong Wu, chairman and CEO of China Medical, said: “BBE has a solid customer base of over 800 hospitals and certain of its reagents and MAIA-based fully automatic ECLIA analyzer can expand our product portfolio and provide us with new business opportunities in the testing of parasitic infections and food safety. BBE’s direct sales experience will also be beneficial to us in formulating our sales strategies.”