Hony, Goldman lead investment in Neusoft medical device units
A consortium including Hony Capital, Goldman Sachs and Canada Pension Plan Investment Board (CPPIB) has agreed to invest $610 million in two medical device subsidiaries owned by Neusoft Corporation, a Chinese IT services provider.
According to a filing, Hony, Goldman Sachs, CPPIB, Frontline BioVentures and Neusoft itself will inject RMB1.6 billion ($258 million) into Neusoft Medical System, and also purchase RMB1.13 billion worth of shares in the unit. In addition, Hony, Goldman and Neusoft have agreed to invest $170 million in Neusoft Xikang, a cloud-based medical and healthcare services provider.
Neusoft Medical Systems develops CT, MRI, X-Ray and ultrasound medical imaging products. Its products have been sold to over 90 countries, serving nearly 8,000 medical institutions globally. Neusoft Xikang, meanwhile, connects medical institutions, doctors and users through a mobile app. Its service covers 30 cities in China.
Neusoft Corporation will remain the largest shareholder of Neusoft Medical Systems and Neusoft Xikang, with holdings of 33.4% and 32.8%, respectively.
John Zhao, founder and CEO of Hony Capital, said in a statement, that the government reforms advocating greater participation of private capital in healthcare have made areas such as the intersection between healthcare services and mobile internet very promising. He noted that the firm has been investing in the sector for 10 years, including pharmaceuticals, medical equipments and medical services.
Zhao added that Hony expects to collaborate with Neusoft to further consolidate certain segments within the healthcare sector.
In October, the Chinese GP acquired Shanghai Yangsi Hospital, the largest privately-owned hospital in Shanghai. Its healthcare portfolio includes Chinese generic drug makers CSPC Pharmaceutical Group and Consun Pharmaceutical Group. Last year, it also completed a privatization of Simcere Pharmaceutical Group.
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