News | February 12, 2013

Neusoft Medical Intends to Acquire Equities in Philips-Neusoft Medical Systems Joint Venture From Philips

February 12, 2013 — Neusoft Corporation announced that it has signed a Term Sheet with Philips on the proposed transaction of shares and assets in Philips and Neusoft Medical Systems Co. Ltd. ("PNMS"). According to the Term Sheet, Neusoft's wholly owned subsidiary Neusoft Medical System Co. Ltd. and its overseas associates intend to acquire 51 percent equities in PNMS held by Philips. Upon the completion of the proposed transaction, all intellectual property rights of PNMS will be shared by both Neusoft and Philips. In addition, a team of approximately 100 to 150 computed tomography (CT) system and component engineers and supporting staff will transfer from the joint venture to Philips.

According to Neusoft, the joint venture had fulfilled its mission over the past years, as evidenced by a large number of competitive products and intellectual property rights. The successful performance of PNMS has built a solid foundation for both sides to further optimize their respective global deployment and improve their competitiveness. With this transaction, Neusoft and Philips will be able to develop new products based on their previous achievements in a more flexible manner in line with their respective strategies, which will further support their long-term strategic targets and plans to help them cope better with new opportunities and challenges in the global market.

PNMS was jointly established by Neusoft Medical and Philips in 2004 with a registered capital of USD 29.6 million. Philips and Neusoft Medical held 51% and 49 percent equities respectively. PNMS is specialized in R&D and production of medical systems such as CT scanners, MRI, ultrasound and X-ray equipments that are branded with Neusoft and Philips respectively and put into the market through their respective marketing networks for global markets. Based on Neusoft Medical and Philips' best practices in medical systems, PNMS has been committed to technology innovation and development of new products, achieving many technical breakthroughs and patents. Its product portfolio includes four categories, 10 series and 20 models, with 17 U.S. Food and Drug Administration (FDA) certificates and 17 CE certificates. These products are widely used in approximately 70 countries and regions around the world. Over the past years since its establishment, PNMS has provided premium products for Neusoft to expand global market, and enriched Philips' product portfolio, making great contribution to promoting Neusoft and Philips' competitiveness in the global arena.

According to the announcement, after the completion of the proposed transaction, Neusoft Medical will become the holding company of the original joint venture and its operations will be maintained. In addition, the knowledge assets obtained by PNMS over the past years will be shared by Philips and Neusoft Medical by means of co-ownership and license, to meet the requirements of respective business development. Neusoft Medical and the original joint venture will continue their businesses in R&D, production and sales of medical systems, such as CT scanners, MRI, X-ray apparatus, ultrasonic diagnosis apparatus and more. Besides, Philips and Neusoft Medical will maintain a partnership in the form of components supply and the original equipment manufacturer (OEM) supply of systems.

"The successful partnership between Neusoft and Philips during the past years has brought both sides to a new height in global market expansion," Dr. Liu Jiren, Chairman and CEO of Neusoft Corporation, commented. "With the ever-changing market environment and business transformation, we have to think about how to adapt to such changes to align with our long-term strategy and growth. This transaction will provide each side with more flexibility and momentum for innovation in the aspects of product positioning and marketing strategies by fully sharing the achievements of the original joint venture. In the future, Neusoft will stick to an active product strategy to enrich product lines, including CT products, to further accelerate our expansion in the global market, especially in those fast-growing emerging markets."

It is reported that Neusoft and Philips will hold further negotiations on the proposed transaction and the signing of the definitive agreements and subsequent closing is estimated to take place before the end of 2013.

For more information: www.neusoft.com, www.medical.neusoft.com/en/

Related Content

Houston Methodist Hospital Enters Multi-Year Technology and Research Agreement With Siemens Healthineers
News | Imaging | August 17, 2017
Houston Methodist Hospital and Siemens Healthineers have entered into a multi-year agreement to bring cutting-edge...
Four Blue Cross Blue Shield Companies Issue Positive Medical Policies on HeartFlow FFRct Analysis
News | Computed Tomography (CT) | August 09, 2017
HeartFlow Inc. announced that four Blue Cross Blue Shield companies have each issued a positive medical policy for the...
The American Lung Association created LUNG FORCE, a national movement to defeat lung cancer
News | Lung Cancer | August 02, 2017
To raise public awareness of lung cancer—the leading cancer killer of men and women—the American Lung Association's...
GE’s DoseWatch is a digital informatics solution that automatically collects, monitors and reports on radiation dose indices for diagnostic imaging exams
News | Radiation Dose Management | July 31, 2017
GE Healthcare announced that it has licensed computed tomography (CT) organ dosimetry technology developed at Duke...
Contrast Media from Bayer, trends in contrast media and developments in contrast media
Feature | Contrast Media | July 28, 2017 | By Dave Fornell
Here are several updates in medical imaging ...
New York Hospital Finds Significant Cost Savings With Toshiba’s Aquilion One CT
News | Computed Tomography (CT) | July 25, 2017
In five years, Kaleida Health’s Stroke Care Center (SCC) at the Gates Vascular Institute in Buffalo, N.Y., has realized...
Samsung Introduces FDA-Cleared BodyTom Elite CT Scanner
Technology | Computed Tomography (CT) | July 24, 2017
Samsung announced U.S. Food and Drug Administration (FDA) approval of the BodyTom Elite, an upgraded version of its...
Sponsored Content | Videos | CT Angiography (CTA) | July 21, 2017
DAIC and ITN Editor Dave Fornell discusses some of the most innovative new computed tomography (CT) technology and tr
ACR Updates Radiation Oncology and Medical Physics Guidance With ASTRO and AAPM
News | Radiation Dose Management | July 19, 2017
July 19, 2017 — The American College of Radiology (ACR) recently collaborated with professional medical societies to
Sponsored Content | Videos | CT Angiography (CTA) | July 19, 2017
Matthew Budoff, M.D., FACC, professor of medicine, David Geffen School of Medicine at UCLA, endowed chair of preventi
Overlay Init