Business / Companies

Investment boost for healthcare market

By Liu Ce ( Updated: 2014-12-12 16:03

Neusoft Corporation, a leading IT solution and service provider based in Shenyang, capital of Liaoning province, is to sign an agreement with investors backing its subsidiaries.

Hony Capital, Goldman Sachs, Neusoft Holdings and others will put funds into Neusoft Medical Systems Co Ltd (Neusoft Medical Systems) and Neusoft Xikang Healthcare Technology Co Ltd (Neusoft Xikang).

Hony Capital, Goldman Sachs, Neusoft Holdings, Canada Pension Plan Investment Board, Frontline BioVentures and others will invest 1.6 billion yuan ($258.4 million) in Neusoft Medical Systems, and also spend 1.13 billion yuan to purchase part of the equities in Neusoft Medical Systems from Neusoft Corporation.

Hony Capital, Goldman Sachs, Neusoft Holdings and others will invest $170 million in Neusoft Xikang.

Both Neusoft Medical Systems and Neusoft Xikang will set the share incentive scheme for the management teams and key employees. After completion of the transactions, Neusoft Corporation will still be the largest shareholder of Neusoft Medical Systems and Neusoft Xikang, holding 33.35 percent and 32.81 percent of equities respectively.

Neusoft will leverage the power of capital markets to further promote transformation of its business model and build an open platform for its healthcare business together with strategic investors to accelerate the expansion in the global healthcare market.

This round of financing will set new records as the largest single financing respectively in China's medical equipment industry and the Internet-based Medical and Healthcare Management sector, while the financing of Neusoft Xikang will be one of the largest single financing in the global Internet-based medical and healthcare management sector.

By introducing strategic investors who have significant resources and experience in the healthcare industry, Neusoft will not only obtain financial support and resources for its healthcare business, but also define different business models for various businesses to generate new vitality for growth. This effort will be part of Neusoft's strategy to support its diversified businesses, including IT solutions, medical equipment, cloud-based medical and healthcare management businesses, to make the equity ownership structure and incentive system better match with the business model. At the same time, using funds received from the equities transfer of Neusoft Medical Systems, Neusoft Corporation will invest more in big data, cloud technology and Internet solutions, to enhance its leading market position and guarantee future sustainable growth.

As a leading digital medical imaging equipments provider in China, Neusoft Medical Systems has developed a series of medical imaging products, including CT, MRI, X-Ray, Ultrasound and PET. Its products have been sold to more than 90 countries and regions around the globe, serving nearly 8,000 medical institutions worldwide.

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