Mindray Completes Acquisition of Datascope's Patient Monitoring Business

Implications: Mindray Medical International (NYSE: MR) has completed its acquisition of Datascope Corporation's (NASDAQ: DSCP) patient monitoring business for $209MM (US).  This acquisition brings both opportunities and challenges for one of the fastest growing global healthcare companies in China. 

Analysis: Mindray Medical International (NYSE: MR) recent acquisition of Datascope Corporation's (NASDAQ: DSCP) patient monitoring business enables Mindray to enter the US healthcare market, which is the single largest in the world.  Datascope had 2007 patient monitoring sales of $161MM (US), when added to Mindray's annual sales makes patient monitoring Mindray's largest business segment.

The acquisition has several obvious benefits for Mindray.  These include an existing US customer base, Datascope brand name recognition and Datascope's patient monitoring market share of approximately 9%.  In addition, current Datascope sales, marketing and service resources are expected to remain in place.  It also provides cross selling opportunities for Mindray's current patient monitoring products, the ability to better understand customer needs and develop future innovations in this area.

The acquisition is not without challenges.  The US patient monitoring market is highly saturated and has low, single digit projected growth rates.  Key competitors are global integrated healthcare companies with leading edge products and large established market shares.  Integration issues such as retention of Datascope personnel, projected synergy benefits of $30MM and management focus requirements on this business segment remain.

For detailed information on this topic, strategic implications and Mindray's laboratory diagnostics business, please contact your GLG representative today to schedule and individual consult.