Samsung Electronics acquires two medical device manufacturers

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On the afternoon of December 14th, Beijing time, Samsung Electronics, the world's largest TV and tablet manufacturer, announced on Tuesday that it agreed to acquire two medical device manufacturers, which is one of the plans of the parent company Samsung Group to expand its new business.

Samsung Electronics said it will acquire 43.5% of the holdings of medical diagnostics manufacturer Medison and all the shares of sensor probe and cable manufacturer Prosonic from Consus Asset Management. The financial terms of the transaction were not announced.

Samsung Electronics said that ultrasonic diagnostic equipment is suitable for the company to expand new business areas, because this area has similarities and potential synergies with Samsung's business and technology. The Samsung Group said in May that it plans to invest 23.3 trillion won (about 20 billion US dollars) by 2020 to develop five new growth businesses, including medical equipment.

Song Myung Sup, an analyst at HI Investment & Securities in Seoul, said: “In contrast to previous attempts to develop each business independently, Samsung now has sufficient cash to find a company that has developed well. The society is getting older as the society ages. Medical demand is growing, so the medical device industry has very good growth potential.” He recommended investors to buy Samsung stock.

According to the Incheon Daily, unnamed sources revealed that Samsung will pay at least 300 billion won to acquire the shares of Medison. However, a Samsung spokesperson declined to comment, saying the deal was confidential.

According to Medison's website, the company's net profit last year was 11 billion won and its revenue was 207 billion won. The company was founded in 1985 and currently employs 422 employees and has 10 branches overseas.

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