Singapore: Neusoft, an IT solution and service provider in China with operations across the globe, has signed a term sheet with Philips on the proposed transaction of shares and assets in Philips and Neusoft Medical Systems. According to the term sheet, Neusoft's wholly-owned subsidiary Neusoft Medical System and its overseas associates intend to acquire 51 percent equities in PNMS held by Philips.

PNMS was jointly established by Neusoft Medical and Philips in 2004 with a registered capital of $29.6 million. Philips and Neusoft Medical held 51 percent and 49 percent equities, respectively. PNMS is specialized in R&D and production of medical systems such as CT scanners, MRI, ultrasound and X-ray equipments that are branded with Neusoft and Philips respectively and put into the market through their respective marketing networks for global markets.

Upon the completion of the proposed transaction, all intellectual property rights of PNMS will be shared by both Neusoft and Philips. In addition, a team of approximately 100 to 150 computed tomography (CT) system and component engineers and supporting staff will transfer from the joint venture to Philips.

According to Neusoft, the joint venture had fulfilled its mission over the past years, as evidenced by a large number of competitive products and intellectual property rights. The successful performance of PNMS has built solid foundation for both sides to further optimize their respective global deployment and improve their competitiveness. With this transaction, Neusoft and Philips will be able to develop new products based on their previous achievements in a more flexible manner in line with their respective strategies, which will further support their long-term strategic targets and plans and better help them cope with new opportunities and challenges in the global market.

Based on Neusoft Medical and Philips' best practices in medical systems, PNMS has been committed to technology innovation and development of new products, achieving many technical breakthroughs and patents. Its product portfolio includes four categories, 10 series and 20 models, with 17 FDA certificates and 17 CE certificates. These products are widely used in approximately 70 countries and regions around the world. Over the past years since its establishment, PNMS has provided premium products for Neusoft to expand global market, and enriched Philips' product portfolio, making great contribution to promoting Neusoft and Philips' competitiveness in the global arena.