M&As on the Rise in the European Medical Imaging Market as Market Leaders Focus on Expanding their Share in Emerging Markets, Says Frost & Sullivan

LONDON, May 19, 2010 - There has been an increasing number of mergers and acquisitions (M&As) in
the European medical imaging market with market leaders focussing on
acquisitions to expand their share in emerging markets. Drug makers, research
labs, equipment manufacturers and healthcare technology companies have been
the active acquirers, whereas hospitals, insurers and pharmacological
companies have a limited number of acquisitions. With healthcare industry
being least affected by the economic downturn, there is sufficient funding
available for healthcare deals, resulting in an increase in the number of
takeovers.

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New analysis from Frost & Sullivan (www.medicalimaging.frost.com),
Consolidation/M&A in Medical Imaging Market, finds that the market earned
revenues US$5,650.4 million in 2009. Tier I companies are often the major
global participants with high revenues and a wide range of product offerings
across all segments of medical imaging. Tier II companies have a notable
presence in the medical imaging market in terms of revenues, and their
product portfolio covers most segments of the medical imaging market. Lastly,
tier III companies have relatively lesser product offerings and are focused
on selected segments of the medical imaging market.

"The economic slump, availability of low-priced acquisitions, and
ready-financing for the healthcare industry have increased the viability of
tier I companies to expand market share through acquisitions," says Frost &
Sullivan Research Analyst Beulah Devadason. "Acquisition focus has mainly
been in emerging markets such as the Brazil, Russia, India, and China (BRIC)
and is likely to continue going forward."

However, market expansion trends through acquisitions and strategic
alliances indicate the entry of Japanese manufacturers in the US and European
markets, whereas US companies have expanded their market share by acquiring
smaller American companies.

"Market expansion, technological developments, and competitive pricing
will play an important role in the survival of non-tier I companies, as tier
I companies continue to enhance their position in all three criteria through
strategic acquisitions," explains Beulah.

The development of innovative technology and formation of strategic
partnerships or alliances with influential market participants are the keys
to success for most tier II and tier III companies in the medical imaging
market.

"Tier III companies will witness significant consolidation activity in
the medical imaging market," concludes Beulah. "Since the market is dominated
by the tier I companies, tier III companies will be acquired for their
technological developments and distribution channels, further increasing the
domination of the tier I companies."

If you are interested in more information on this study, please send an
e-mail to Katja Feick, Corporate Communications, at katja.feick@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

Consolidation/M&A in Medical Imaging Market is part of the Medical
Imaging Growth Partnership Services programme, which also includes research
in the following markets: Medical Imaging Business Outlook During the
Recession, Medical Imaging Industry Outlook - 2009, and Company Profiles -
Medical Imaging Equipment Vendors. All research services included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

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    Consolidation/M&A in Medical Imaging Market
    M540

    Contact:
    Katja Feick
    Corporate Communications - Europe
    P: +49-(0)-69-7703343
    E: katja.feick@frost.com
    www.frost.com
    Twitter: twitter.com/frost_sullivan

Katja Feick, Corporate Communications - Europe, Frost & Sullivan, +49-(0)-69-7703343, katja.feick at frost.com