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(Sharecast News) - Critical components manufacturer Avingtrans said on Tuesday that its two medical equipment businesses, Scientific Magnetics and Tecmag, will merge with Australian medtech and engineering company Magnetica.
Avingtrans said Magnetica plans to merge with Scientific Magnetics and its US subsidiary Tecmag following Magnetica's annual general meeting on 29 January.
Subject to completion, Avingtrans, which currently holds an 82% interest in Scientific Magnetics, will become the majority shareholder in the combined business, which will continue to be known as Magnetica and form a key part of the AIM-listed group's medical and industrial imaging unit moving forward as Scientific Magnetics and Tecmag become wholly-owned subsidiaries of Magnetica.
Avingtrans chief executive Steve McQuillan said: "We believe this merger offers real potential to accelerate the planned move up the value chain in what is a highly specialised and integrated, international medical imaging market.
"By combining the expertise of Magnetica, Scientific Magnetics and Tecmag in a single entity, there is an exciting opportunity to become a leading MRI systems integrator for a variety of niche markets, as well as the prospect of increasing accessibility to high-quality medical imaging around the world."
As of 1035 GMT, Avingtrans shares were up 2.12% at 289.0p.
25 Feb 2015 09:25