Shanghai INT Medical Instruments Co., Ltd. (INT Medical, 01501) has signed definitive agreements to acquire 3.61 million shares—comprising ordinary, Series A and Series B preferred stock—of an unnamed structural-heart device company (the “Target Company”) for a total cash consideration of USD172.88 million.

The purchase consists of 2.16 million ordinary shares at USD6.23 each, 0.40 million Series A preferred shares at USD14.94 each and 1.63 million Series B preferred shares mainly at USD95.06 each. Major sellers include funds managed by DCP Capital, Lake Bleu Capital, BioTrack Capital and Qiming Venture Partners; all are classified as independent third parties.

Pre-transaction, INT Medical held no equity in the Target Company. Upon closing, it will control 27.82 % of the enlarged share capital, split across 14.36 % ordinary, 2.66 % Series A and 6.95 % Series B shares. A board-approved “share adjustment” will later issue additional Series B shares to existing holders at nil consideration, reducing INT Medical’s dilution risk and aligning the effective subscription price of Series B with Series A. After this adjustment, INT Medical’s overall interest is expected to rise above 30 %, positioning the group to obtain full control through additional ordinary-share purchases.

Financial due-diligence highlights show the Target Company generated RMB205.88 million (USD28.26 million) in revenue for 2025, more than doubling year-on-year, and swung to a RMB49.57 million (USD6.80 million) profit before tax. First-half 2026 revenue reached RMB109.60 million. Total assets stood at RMB687.63 million against net liabilities of RMB469.58 million, largely attributable to redemption obligations embedded in preferred shares—liabilities that are expected to be derecognised once the share adjustment is completed.

INT Medical plans to fund the acquisition through a combination of its RMB1.41 billion cash balance (as of 30 April 2026) and dedicated bank financing. Management expects no material short-term liquidity pressure.

Strategically, the acquisition complements INT Medical’s existing aortic-valve franchise by adding the Target Company’s DragonFly transcatheter mitral valve clamp system—approved by China’s NMPA and the EU CE mark—as well as a pipeline of four devices under the NMPA’s innovative-device pathway. The integration is intended to broaden INT Medical’s coverage across aortic, mitral and tricuspid valve interventions while leveraging an established distribution network of over 200 partners.

The board regards the transaction terms as fair and reasonable, noting that preferred-share pricing was pegged to investors’ original costs and that ordinary-share valuation reflects the absence of liquidation preferences and anticipated dilution from the share adjustment.