China’s Neusoft partners with Israeli PE firm for $250m medtech fund
Infinity Group, a China-Israel cross-border private equity firm, has partnered with Chinese IT services provider Neusoft Corporation to launch a $250 million medical technology fund.
The fund was announced at the China-Israel Investment Summit in Tel Aviv, according to The Times of Israel. It will invest in Israeli medical technology companies operating in China over the next three years. As part of the agreement, Neusoft will allow Israeli healthcare companies to get access to its cloud database, through which they can reach Neusoft's client base.
Shanghai-listed Neusoft is one of China's largest IT solutions and services providers to the mobile, automotive and medical industries. It owns medical imaging products developer Neusoft Medical Systems and cloud-based healthcare services provider Neusoft Xikang.
Both Neusoft Xikang and Neusoft Medical received an investment from a consortium including Hony Capital, Goldman Sachs and Canada Pension Plan Investment Board in 2014. The group committed $610 million to the two companies, with Hony planning to collaborate with Neusoft on consolidation plays in China's healthcare sector. Last month, PICC Property and Casualty, a subsidiary of People's Insurance Company of China (PICC), led a $64 million funding round for Neusoft Xikang.
Neusoft Corporation is itself a subsidiary of Chinese healthcare conglomerate Neusoft Holdings. China Everbright recently invested an undisclosed amount in the parent company through its renminbi-denominated mezzanine fund.
Founded in 1993, Infinity Group was backed by China Development Bank and Israeli conglomerate Clal Industries. It invests in technology, media and telecom (TMT), life science, new materials, education, agriculture and education sectors, with a view to taking Israeli companies to expand their businesses in China. The firm currently manages 23 funds registered in China with over $1.5 billion in assets under management.
Israeli high-end technology has attracted strong Chinese interest, with corporates and financial investors lining up to invest in Israeli VC and PE funds, and making direct investments into local companies for cross-border expansion.
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