New Delhi: Indian medical technology company Trivitron Healthcare has acquired Mumbai-based imaging accessories manufacturer Kiran Medical Systems, and Imaging Products (India) Pvt. Ltd (IPI) for an undisclosed amount.

IPI manufactures and markets contrast products in association with Italian diagnostic imaging products Bracco Spa and was founded by Ramesh Modi, founder of Kiran Medical Systems.

“We had 26% share in Kiran Medical Systems which we brought to 51% in 2013 after which we completely acquired it this year. We also acquired IPI which distributes and manufactures diagnostic imaging products," said G.S.K. Velu, founder and managing director of the company.

Velu declined to disclose the value of the two transactions but said that Kiran Medical Systems had annual revenue of around 70-80 crore.

In 2013, private equity firm India Value Fund Advisors invested 150 crore in Trivitron. Earlier in 2012, the Chennai-based company raised 400 crore from Fidelity Growth Partners.

According to Velu, Trivitron is also looking at acquiring companies in Europe.

“We are looking at technology based companies in Europe especially in Scandinavian region, for companies which work in segments like critical care, ophthalmology and dental. These would be companies between revenue of 50-100 crore and our sweet spot for acquisitions would be between $5-20 million," Velu said.

In 2012, Trivitron acquired Finland-based Ani Labsystems for €15.8 million. Ani Labsystems is a group of companies comprising Ani Biotech, Ani Labsystems, Biopoint and K3, specialising in manufacturing of neonatal screening, cardiac, gastro and respiratory diagnostics kits and infectious disease testing products.

A number of Indian medical technology companies are looking at acquisitions in overseas markets.

“Through these acquisitions Indian companies have access to products of target companies which are licensed and could start selling them from day one. These target companies could also become production hubs for supply into other international markets and Asia," said Rana Mehta, leader, healthcare at PricewaterhouseCoopers, a consultancy.

According to Mehta, regulatory impasse has been a dampener to growth in medical technology business in India.

“While medical technology industry has been growing historically, it has not grown as per expectations. This is because unclear regulations and the fact than even today medical technology is clubbed with pharma industry when it comes to regulations," he said.

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