Chinese medical device giant Mindray Medical ($MR) has snatched up a homegrown medical instrument maker.
The Shenzhen-based company disclosed it bought a controlling stake in Optcla Medical Instrument, which is based on Hangzhou, China and makes rigid endoscopes. Neither side disclosed financial terms, of course.
What's the significance of the deal? For Mindray, the action amounts essentially to greater diversification, giving it access to more minimally invasive surgical devices. The company already sells plenty of global products in three areas: patient monitoring and life support systems, in-vitro diagnostic and medical imaging systems. An endoscope is a minimally invasive diagnostic tool, and can help examine the inside of the body without a lot of complications. In its announcement, the company notes that the endoscope market in China alone was estimated at approximately $240 million in 2010, and around $2.6 billion globally as of 2011. Both numbers are expected to grow steadily, with double-digit growth likely in China.
Mindray's chief strategic officer, Minghe Cheng, said in a statement that he sees the deal benefiting both companies and giving Mindray "new growth opportunities."
This isn't the first time Mindray bought a controlling stake in a company in order to boost its market offerings. Earlier this year, for example, the company said it would acquire a controlling stake of Shenzhen Shenke Medical Instrument Technical Development.
- read the release