GE Healthcare (NYSE:GE) said it agreed to buy Vatech Co.’s (KOSDAQ:043150) Rayence mammography business in Korea for an undisclosed amount.
GE Healthcare plans to fold the Rayence assets into its detection & guidance solutions division, according to a press release.
The buyout is aimed at expanding the medical device company’s footprint in the "value" tier of the imaging sector in rural and emerging markets.
The deal, expected to close during the 3rd quarter, also calls for GE Healthcare to maintain Rayence’s engineering and production operations in Seoul and includes a supply agreement for Rayence’s complementary metal-oxide semiconductor detector technology, according to the release.
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.
"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," Prahlad Singh, general manager for women’s health in GE Healthcare’s detection & guidance solutions segment, said in prepared remarks.
