Medical device and technology provider Trivitron Healthcare has made a strategic investment in Kiran Medical Systems Ltd for an undisclosed minority stake, the company has stated on Wednesday.
“The details of the financial transaction cannot be revealed but the investment in Kiran is for a minority stake, involving cash component and a stock swap. The agreement between the two companies also ensures that Trivitron can increase its shareholding over the next few years,” G.S.K. Velu, founder and managing director of Trivitron, told VCCircle.
Under this deal, Trivitron will get entry into Kiran’s imaging product portfolio and will have access to over 160 countries where Kiran already has a presence, thus increasing its global footprint with a complete range of equipment, consumables, accessories and apparels in the global imaging diagnostics market, Velu added.
As a result of this strategic investment, G.S.K. Velu and Ramesh Verkot of Trivitron will be on Kiran’s board. A core cross-functional group, with representation from Kiran Medical and Trivitron Healthcare, will also evaluate synergies and implement strategies that will benefit both companies. However, Ramesh Modi, chief executive officer of Kiran Medical, will continue to operate the business of Kiran as an independent entity.
Incorporated in 1976, Mumbai-based Kiran Medical is the manufacturer and supplier of image enhancement accessories and radiation protection products. The company develops a wide range of products such as cassettes, screens, grids, shields and computer radiography systems, and enjoys a leadership position in the USA, Europe, Japan and Latin America. It also provides accessories to some of the leading imaging product manufacturers like Fuji, Agfa and Kodak. Kiran operates a 70,000 sq. ft. manufacturing facility in Mumbai and employs about 150 people in India.
Trivitron Healthcare operates as a medical technology solution provider in India and abroad. The company has a strategic partnership with Hitachi Medical Systems and also offers consultancy services for setting up hospitals, nursing homes, clinical laboratories and research centres. Founded in 1997, Trivitron is headquartered in Chennai, with operations in the Middle East, South and South-East Asia and Africa.
“This tie-up will be a significant step towards building leadership in the imaging market. The synergies accruing from this partnership will position Trivitron as the most comprehensive player in the imaging diagnostic market in the country, besides giving us access to 160 countries around the world,” Velu commented on the deal.
“We will now have a stronger footprint with access to Trivitron’s strong marketing infrastructure which will promote our imaging accessories and radiation protection offerings,” said Ramesh Modi, CEO of Kiran Medical Systems.