GE Healthcare to acquire certain Mammography assets of Rayence

Jun 21 2013

GE Healthcare (NYSE: GE) today announced that it has agreed to acquire certain Mammography assets of Rayence, a subsidiary of Vatech Co Ltd (KOSDAQ: 043150), a Korean X-Ray manufacturer. The Mammography assets of Rayence will, at closing, become part of the Detection & Guidance Solutions (DGS) business unit of GE Healthcare.

“This acquisition is another example of Korea's world class R&D capabilities coming together with GE's global technology leadership. Our 'In Korea, For the World' strategy creates win-win partnerships with local talent and companies.”

Given the dynamic emerging healthcare market, this acquisition is strategically significant as it will allow GE Healthcare to expand its mammography product range to the Value Mammography segment, estimated to be over $200M. "This opportunity represents another very important step in the company's strategy of offering complete solutions that meet the needs of our global customers, while helping to provide more access to quality healthcare at a lower cost," said Hooman Hakami, President & CEO — Detection & Guidance Solutions.

"At GE Healthcare we are very excited about the future of Women's Healthcare. With the mammography assets of Rayence, tailored for regions with specific cost and access needs, we add capability that allows us to bring affordable mammography solutions to new users and rural communities around the world, in particular physicians undertaking screening programs for breast cancer diagnosis. In addition, when combined with GE's core imaging capabilities, we will create a system that will have best in class image quality at the lowest total cost of ownership," said Prahlad Singh, General Manager - Women's Health, GE Healthcare, Detection & Guidance Solutions (DGS)."

In addition, the acquisition is part of GE Korea's growth strategy, "In Korea, For the World". This deal is especially meaningful as GE Healthcare has identified a Korean company with remarkable technologies in mammography and plans to continue local engineering and production while targeting the global market. GE Healthcare will also play a crucial role for Rayence to secure a sales channel in the global market by signing a separate supply agreement of CMOS detector.

Laurent Rotival, President and CEO of GE Healthcare Korea, said, "This acquisition is another example of Korea's world class R&D capabilities coming together with GE's global technology leadership. Our 'In Korea, For the World' strategy creates win-win partnerships with local talent and companies."

James Hyun, CEO of Rayence said, "This deal is meaningful in that Rayence has secured a solid global business partner for supplying CMOS detectors. I am very pleased that Rayence's technology capabilities were acknowledged and products made by Rayence will be distributed to the world by GE Healthcare, thereby contributing to the enhancement of women's health. Rayence plans to invest the money earned through the sale of our mammography assets into the R&D of core parts for x-ray devices including detectors and expansion of manufacturing lines."

Rotival added, "GE Healthcare will continue to be a strong partner by investing in Korea and strengthening our joint commitment to our customers and our communities in helping them deliver the best quality and cost effective patient care."

The transaction is subject to customary closing conditions and is expected to close in the third quarter.

SOURCE GE Healthcare