Samsung Electronics, the world's largest TV and tablet maker, announced on Tuesday that it agreed to acquire two medical device manufacturers. This is one of the plans for the parent company Samsung Group to expand its new business. In 2009 Samsung Electronics announced its new “Ten-Year Plan†at the celebration of its 40th anniversary, identifying medical, biological, environmental and energy services as growth drivers.
Samsung Electronics stated that the company will acquire from Consus Asset Management a 43.5% controlling stake in Medison, an ultrasound diagnostics device manufacturer, and all the shares of sensor probes and fiber cable manufacturer Prosonic. The financial terms of the transaction were not announced.
Samsung Electronics stated that the ultrasonic diagnostic apparatus is an area suitable for the company to expand new business, because this area has similarities and potential synergies with Samsung's business and technology. Samsung Group said in May that it plans to invest 23.3 trillion won (about 20 billion U.S. dollars) by 2020 and develop five new growth businesses such as medical equipment.
Song Myung Sup, an analyst at Seoul-based HI Investment & Securities, said: “In contrast to trying to develop each business independently, Samsung now has sufficient cash to look for companies that have already developed well for acquisitions. As society gradually ages, people’s medical needs increase. With increasing growth, the medical equipment industry has very good growth potential." He recommended that investors buy Samsung stocks.
According to an Incheon Daily report, an unnamed source revealed that Samsung will pay at least 300 billion won to purchase Medison shares. However, Samsung’s spokesperson declined to comment, saying the deal was confidential.
According to the information of Medison website, the company's net profit last year was 11 billion won and its revenue was 207 billion won. The company was established in 1985 and currently employs 422 employees and has 10 branches overseas.
Samsung Electronics stated that the company will acquire from Consus Asset Management a 43.5% controlling stake in Medison, an ultrasound diagnostics device manufacturer, and all the shares of sensor probes and fiber cable manufacturer Prosonic. The financial terms of the transaction were not announced.
Samsung Electronics stated that the ultrasonic diagnostic apparatus is an area suitable for the company to expand new business, because this area has similarities and potential synergies with Samsung's business and technology. Samsung Group said in May that it plans to invest 23.3 trillion won (about 20 billion U.S. dollars) by 2020 and develop five new growth businesses such as medical equipment.
Song Myung Sup, an analyst at Seoul-based HI Investment & Securities, said: “In contrast to trying to develop each business independently, Samsung now has sufficient cash to look for companies that have already developed well for acquisitions. As society gradually ages, people’s medical needs increase. With increasing growth, the medical equipment industry has very good growth potential." He recommended that investors buy Samsung stocks.
According to an Incheon Daily report, an unnamed source revealed that Samsung will pay at least 300 billion won to purchase Medison shares. However, Samsung’s spokesperson declined to comment, saying the deal was confidential.
According to the information of Medison website, the company's net profit last year was 11 billion won and its revenue was 207 billion won. The company was established in 1985 and currently employs 422 employees and has 10 branches overseas.
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