04 May, 2016

China's Sinocare Reaches Definitive Agreement to Acquire PTS Diagnostics

Sinocare Inc announced today it has signed a definitive purchase agreement with privately-held PTS Diagnostics, under which Sinocare will acquire PTS Diagnostics for up to $200 million in cash including contingent considerations of up to $90 million for the successful accomplishment of certain milestones. PTS Diagnostics is a U.S.-based manufacturer of point-of-care biometric testing devices, including the CardioChek® family of analyzers, A1CNow systems, and PTS Detect cotinine systems. The company’s manufacturing facilities are principally located in Indianapolis, IN and Sunnyvale, CA.

Shaobo Li, Chairman and CEO of Sinocare commented, “Sinocare is dedicated to the innovation of biosensor technology and has been providing high quality products and services to people with diabetes and other chronic diseases. Through continuous innovation, PTS Diagnostics has become the market leader of lipid, A1C and other important point of care biometric testing. We know Sinocare and PTS Diagnostics have a shared vision and mission to improve the quality of life for our users. We commend and respect the achievements of the PTS management team and employees, and we are confident that they will be able to continue to deliver and achieve our common goals. We will continue to grow our business and explore opportunities globally and we will provide more innovative and systematic solutions to fight chronic diseases which allow people with diabetes and other chronic diseases live better and healthier lives.”

“PTS Diagnostics has a proven track record of driving innovation and efficiency in the point of care biometric testing category. We are quite pleased and excited by the many future opportunities that now open for us as a part of the Sinocare, as together we will greatly expand our mutual global reach. We share a vision of innovation and creativity, and together we will make our various solutions available to a much larger customer base, driving action and connecting more people to improved outcomes. Our biometric connectivity and information platform, PTS Connect, continues to solve significant data management problems for healthcare professionals,” said Robert Huffstodt, President and CEO of PTS Diagnostics. “PTS Diagnostics’ core product portfolio of lipid and HbA1c testing systems also integrate well with Sinocare’s focus on glucose monitoring. Our combined company will provide unmatched access to information that will help improve diagnosis and monitoring of multiple chronic diseases. Together, our future will be centered on transforming preventative medicine, biometric testing, and connectivity by providing fast, easy, portable, and accurate medical devices and information management systems to individuals and healthcare professionals.”

Subject to the satisfaction of certain conditions, the transaction is expected to be completed within one hundred and twenty days.

Evercore is acting as exclusive financial advisor to Sinocare. J.P. Morgan Securities LLC is acting as exclusive advisor to PTS Diagnostics.

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