Mindray Medical hopes to branch into patient monitoring. Source: Mindray

Mindray Medical International Limited has signed a definitive agreement to acquire Datascope's patient monitoring business.

The acquisition consideration consists of $202 million in cash funded through Mindray's internal cash and planned third-party borrowings. The Montvale, N.J.-based Datascope will retain approximately $38 million of receivables generated by the patient monitoring business, according to Mindray.

The company said it plans to maintain Datascope's existing branded product lines and to continue manufacturing Datascope products in the United States. David Gibson, Datascope's vice president and president, patient monitoring division & technology services division, will serve as the president of Mindray's Datascope patient monitoring business unit upon completion of the transaction.

The existing management team is expected to continue post-closing without significant changes along with the rest of the patient monitoring division staff, Mindray said.

The company said that currently most of Datascope's patient monitoring revenue is generated from sales in North America, with the remainder from markets largely in Europe.

Upon closing, Shenzhen, China-based Mindray said it expects to benefit from the synergies created by combining Mindray's China-based engineering and production platforms with Datascope's brands and reputation for high-quality products and service, its large and established direct sales and service team in the United States and Europe. Also, Mindray expressed confidence in both companies' research and development capabilities.

Upon completion of the transaction, Mindray said it will have approximately 4,100 employees.