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Follow on Google News |  Ikang Acquires Beijing Zhengqingyuan, Industrial Integration Boosting Service UpgradeZhang Ligang, Board Chairman of iKang, the biggest domestic health management company, recently announced they acquired Beijing Zhengqingyuan Checkup.
By: InvestToChina China’s two biggest health checkup and management institutions reached the market expansion through acquisition going against the trend almost at a same time during the economic downturn. The senior executives of the two institutions both admitted that they would reinforce the integration as long as the purchase condition becomes mature. M&A Accelerated On December 17, iKang released a high-profile announcement of acquisition of stake in Beijing Zhengqingyuan. Zhengqingyuan is a health checkup institution established after the epidemic of SARS. It currently operates two large-scale chain stores in Beijing. The number of annual clinic patients reached 60,000 for several consecutive years. Most of its customers are from the state-owned enterprises in Beijing. Zhengqingyuan is one of the leaders of several thousand checkup institutions in Beijing. Since the penetration into the market, Zhengqingyuan has been specializing in the medical checkup programs. With the long attention and research to the international checkup market, Zhengqingyuan acknowledges that the health management is upgrading from health checkup to completed health management service, while the single health checkup service cannot meet the needs of customers. After the acquisition is completed, Zhengqingyuan will thus become one of the wholly-owned subsidiaries of iKang. Zhengqingyuan will keep its present business and share the IT software platform of iKang. Earlier December, Ciming Checkup Group acquired the Beijing-based Baizhong Medicare and Wuhan-based Very Good Checkup Chain Institution, securing the 3 checkup stores of the former and 12 of the latter. This is the first time that Ciming Checkup expanded its network through a large-scale acquisition. Until now, Ciming has 45 checkup stores nationwide, taking the lead in the industry. Beijing Baizhong is ranked the second after Ciming in the privately-owned health checkup market of Beijing, with annual operation revenue of about CNY 50 million. Very Good Checkup mainly taps the South China market. The 3 out of 12 stores are in Wuhan, the others are in Shenzhen, Guangzhou, and Dongguan etc. The acquisition prompted Ciming to steer into the South China region where a little presence is made. Operation revenue of nearly CNY1 billion will be contributed. Industrial Service Boosting Service Upgrade Insiders of the industry admit the Chinese health checkup market has witnessed a rapid development since the epidemic of SARS. The industry also encountered the bottleneck of development during the past 5 years. Given the actual influence of economic crisis, the industry is in urgent need of a reshuffle and promotion of operation and management through integration. More Investment News from www.investtochina.com Medtronic Invests in Weigao, the First Acquisition by Multinational Medical Device Enterprise http://www.investtochina.com/ China Resort Holding Inc Lists at NASDAQ http://www.investtochina.com/ Changzhou VC Association Established, as More Investment to Come Next Year http://www.investtochina.com/ Tool Manufacturer Zhejiang Sanding Lands in NYSE Euronext’s Alternext http://www.investtochina.com/ # # # As a connection between global investors and China's fast-growing enterprises, InvestToChina.com provides the latest and overall market news about China, as well as a full range of professional services, including Research, Consulting, Due Diligence, etc End
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