|Sinocare CEO Shaobo Li|
China's Sinocare is grabbing U.S. diagnostics player PTS Diagnostics in a deal valued at $200 million. The move is meant to help Sinocare expand its global footprint and get its hands on the company's biometric testing devices for chronic diseases such as diabetes.
Sinocare will shell out up to $200 million in cash including $90 million in milestones for PTS, the company said in a statement. The deal hands Sinocare PTS' testing portfolio, which includes lipid and glucose analyzers for diabetes, portable blood sugar testing devices and a product that screens for tobacco use.
If all goes according to plan, the companies expect to close the deal in the next four months, Sinocare said in a statement.
"We know Sinocare and PTS Diagnostics have a shared vision and mission to improve the quality of life for our users," Sinocare CEO Shaobo Li said in a statement. "We will continue to grow our business and explore opportunities globally and we will provide more innovative and systematic solutions to fight chronic diseases which allow people with diabetes and other chronic diseases live better and healthier lives."
The deal marks a bright point for Sinocare, which has been trying to beef up its diabetes testing business through M&A. Last year, the company made a $1 billion bid for Bayer's diabetes devices but ultimately lost out to Panasonic Healthcare.
Sinocare didn't let that disappointment rain on its parade. A few months later, it said it would pay $273 million for Nipro Diagnostics to broaden its presence in the blood glucose monitoring market.
Sinocare's latest deal with PTS makes good business sense, PTS CEO Robert Huffstodt said in statement. The companies "share a vision of innovation and creativity" and can team up to "expand our mutual global reach," Huffstodt said.
"Our combined company will provide unmatched access to information that will help improve diagnosis and monitoring of multiple chronic diseases. Together, our future will be centered on transforming preventative medicine, biometric testing, and connectivity by providing fast, easy, portable, and accurate medical devices and information management systems to individuals and healthcare professionals," Huffstodt said.
- read the statement