Anything Samsung can do…

Yesterday it was announced that Sony Corporation had completed the acquisition of a company called Micronics. Nothing strange about this I hear you saying to yourself. Global conglomerates buy small companies all the time to speed up their entry into a new market rather than pursue expensive and time consuming R&D. 

Yet when we look more closely at the deal and examine in more detail the market in which Sony made its acquisition, then it becomes a lot more interesting.

Micronics is a US-based developer of intro-vitro and other diagnostic medical devices. It’s a privately held company, founded in 1996 and, as is fairly typical of companies in this market space, it has gone through a few earlier rounds of venture capital funding.

Sony has acquired 100% of the company, the price has not been disclosed, but a spokesman for Sony was quoted as saying “The acquisition is Sony’s first in the medical equipment industry, the company which offers displays, cameras, and printers for medical institutions, is considering ways to expand in the healthcare field where the company’s electronics technologies, such as optical discs, can be applied.”

But it isn’t the first Asian consumer electronics company to have looked to move into this market space. In December last year Samsung Electronics dipped its toe into the water by looking at buying 43% of Medison, the Korean medical device company. The deal was reported to be worth over $250m.

Both acquisitions, though different in their approach in terms of a 100% acquisition verses a minority stake illustrate the potential opportunities and synergies available in this market to the giant electronics companies.
 

Filed under: dealmaking, M&A, technology, Asia