Samsung Buys Local Medical Equipment Maker

Company wants to diversify into the medical device business

Samsung Electronics, the world's top computer memory chip maker, said on Dec. 15 that it has signed a deal to buy a controlling stake in a top South Korean medical equipment maker.

Samsung said the deal was part of its long-term strategic expansion into the medical devices business.

It said it would acquire a 43.5% stake in Medison from private equity firm Consus Asset Management. Medison is the world's fifth-largest ultrasound equipment maker, holding an estimated 6.7% share of the global market.

Samsung said it would also buy a 100% stake in Prosonic, a South Korean manufacturer of probes and cables for ultrasound devices.

It said in a statement the ultrasound diagnostics device segment is a logical entry point into the health care equipment market due to technological similarities with its existing consumer electronics and IT products.

Samsung unveiled a plan earlier this year to invest 23 trillion won (US$20.1 billion) in new businesses, including renewable energy and health care.

Copyright Agence France-Presse, 2010

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