Espicom View : The addition of a partnership with Rayence, a local company, will give GE Healthcare increased access to Korea and other geographies close by. GE Healthcare already has an extensive mammography product portfolio, the addition of low cost technologies has the potential to increase access to emerging markets that will benefit from products in a lower price range. This partnership will also be beneficial to Rayence, enabling the company to broaden its sales channels globally.
GE Healthcare has agreed to acquire certain mammography assets of Rayence, a subsidiary of Vatech, 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. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2013.
The acquisition is strategically significant as it will allow GE to expand its mammography product range to the value mammography segment. With the mammography assets of Rayence, tailored for regions with specific cost and access needs, GE will bring affordable mammography solutions to new users and rural communities around the world, in particular physicians undertaking screening programmes for breast cancer diagnosis.
In addition, the acquisition is part of GE Korea's growth strategy, In Korea, For the World. This deal is especially meaningful as GE has identified a Korean company with technologies in mammography and plans to continue local engineering and production while targeting the global market. GE 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 (complementary metal oxide semiconductor) detector.
Rayence plans to invest the money earned through the sale of mammography assets into the research and development of core parts for X-ray devices, including detectors and expansion of manufacturing lines.