By Alexandra Burlacu email: firstname.lastname@example.org | Jan 29, 2013 11:53 AM EST
Samsung Electronics just announced that it has bought medical imaging company NeuroLogica in an effort to build a leading medical technology business.
NeuroLogica develops medical-image producing machines such as computer tomography (CT) scanners and Samsung's U.S.-based affiliate, Samsung Electronics America Inc., is the proud new owner. The company did not disclose the terms of the deal, so it remains unknown at this juncture just how much the acquisition was worth.
"Established in 2004, NeuroLogica develops cutting-edge medical imaging products and is known for its world-class portable CT scanners, such as BodyTom and CereTom," reads the press release. "The acquisition of NeuroLogica is another important step in the expansion of Samsung's medical imaging business. Samsung will continue to strengthen its capabilities and product portfolio to establish itself as a trusted leader in the health and medical equipment industry. The company plans to leverage its global brand awareness and world-leading technology in consumer electronics, IT and communications with NeuroLogica in order to expand medical imaging business."
By 2020, Samsung Electronics wants to enhance medical imaging diagnosis and provide innovation to both medical staff and patients, as part of a broader effort to seek new ways of growth in the healthcare business.
Samsung Electronics America announced last November that it was adding Samsung Health & Medical Equipment, expanding its Enterprise Business Division with employees from Samsung Medison America. Samsung had acquired Medison back in 2010, describing its medical technology business as a "key element" in the company's 2020 vision to explore new avenues of growth.
In Jan. 2012, Samsung had reportedly considered an acquisition of Olympus' struggling healthcare business, but ultimately decided to pass off the opportunity. The company said it would rather focus on what it does best, and Olympus was not part of that vision. With NeuroLogica, however, the electronics giant seems to have found greater potential.
The NeuroLogica acquisition is Samsung's latest effort in the healthcare industry and falls in line with the company's business plan for the coming years. Samsung currently has four main business units: consumer electronics, telecoms, chips, and display. The telecom's unit accounts for more than half of Samsung's revenue.
In terms of medical ventures, however, analysts expect it will be at least five years before Samsung actually sees some profit growth.