IMI seeks to acquire medical firm in Europe

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Integrated Micro-Electronics Inc. (IMI), the electronics and semiconductors arm of the Ayala Group, is seeking to acquire a medical technology firm in Europe to increase the healthcare business contribution to company revenues.

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IMI President and Chief Executive Officer Arthur R. Tan told reporters after the firm’s annual stockholders meeting a medical-related company in Europe would help the growth
of its healthcare business

“We will need to acquire a company that has a certification tied to its products, allowing to produce it outside the country where it is produced,” Tan said.

“We’re dealing with companies in Europe, but the talks are still in pre-mature stage. But we are also open to those in Japan and the US,” he said.

“Medical technology comes out from those countries. Yes, it’s built everywhere, but the technology comes out only from Europe, Japan and the US,” Tan said.

In December last year, IMI Chief Financial Officer Jerome Tan said that the company is expecting to expand the contribution of its medical segment to double digits from the current 3 percent to 4 percent revenue share at present.

“Fastest growing medical portion is China. Chinese products are not certified to be used outside the country. So I’m building it for China, so it’s not going out. Right now, it still makes up 3%-4% of overall sales,” Tan said.

Tan said the company has “started an engagement in a major medical company in China” to jumpstart the expansion in the medical market, aside from its existing contract with another Chinese medical firm.

Declining to give more details on the acquisition, the CEO said: “We can’t disclose as much
because it is not even in its advanced stage yet.”

IMI said its net income surged to $29.1 million in 2014, nearly thrice its $10.5 million profit in 2013, while revenues increased 13 percent to $844.5 million in 2014 from $745 million a year ago.

Last year, revenue contributors consisted of automotive sector (38 percent share), telecommunications (21 percent), industrial (12 percent), consumer (12 percent), computing (6 percent), medical (3 percent), multiple markets and others (8 percent).

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