In a concerted effort to augment presence in the healthcare
industry, GE Healthcare, the healthcare operating unit of
General Electric Company
), recently inked a definitive agreement to acquire some of the
Mammography assets of Rayence Co Ltd for an undisclosed amount.
Post-acquisition, the acquired assets will form an integral part
of the Detection & Guidance Solutions business unit of GE
COMPASS DIVERSF (CODI): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
HONEYWELL INTL (HON): Free Stock Analysis
ITT CORP (ITT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Headquartered in South Korea, Rayence manufactures and supplies
FPD (Flat Panel Detector) for digital X-Ray imaging system across
the globe. It is a subsidiary of Vatech Co Ltd, a premier Korean
X-Ray manufacturer. In association with its parent company,
Rayence offers a diversified portfolio of radiographic sensors
that are the most critical components of diagnostic X-ray
With this acquisition, GE Healthcare has strengthened its
position in the mammography segment, the market for which is
currently estimated to be around $200 million. Moving forward,
the company expects to invest significantly in local engineering
and production facilities to make the products available to new
users and rural communities around the world for screening
programs for breast cancer diagnosis. GE Healthcare specifically
intends to merge its core imaging capabilities with Rayence's
mammography assets, which are tailor-made for specific
geographical regions, to further bring down the costs of these
The acquisition is also in sync with the corporate growth
strategy of "In Korea, For the World" of GE Korea, wherein it
leverages low-cost high-quality technologically advanced products
for the overall improvement of the global community. On the other
hand, by pairing with GE Healthcare, Rayence anticipates to
achieve economies of scale and utilize its sales channel for
garnering further business of CMOS (Complementary
metal-oxide-semiconductor) detectors that allows a high density
of logic functions on an integrated chip (IC). In addition,
Rayence aims to invest the money generated from the partial
divesture of assets for R&D efforts of core parts for x-ray
devices. The transaction, therefore, is a win-win deal for both
the participating companies.
Headquartered in the U.K., GE Healthcare offers a broad portfolio
of products and services that redefine patient care. The company
has a proven expertise in diverse healthcare segments such as
medical imaging and information technologies, medical
diagnostics, patient monitoring systems, drug discovery,
biopharmaceutical manufacturing technologies, performance
improvement and performance solutions. It accounted for 12.3% of
the total revenue of General Electric in first quarter 2013.
Serving over 100 million customers worldwide, General Electric is
one of the largest and the most diversified technology and
financial services corporations in the world, with products and
services ranging from aircraft engines, power generation, water
processing, and security technology to medical imaging, business
and consumer financing, media content and industrial products.
Its segments include Power & Water, Oil & Gas, Energy
Management, Aviation, Healthcare, Transportation, Home &
Business Solutions, and GE Capital.
General Electric currently has a Zacks Rank #3 (Hold). Other
companies in the industry worth mentioning include
Compass Diversified Holdings
Honeywell International Inc.
), each carrying a Zacks Rank #2 (Buy).