Samsung Electronics Acquires Sonio for $669 Million to Strengthen Leadership in OB/GYN Ultrasound AI

On September 3, 2024, Sonio, a medical technology company focused on women’s and children’s health, announced that it had been acquired by Samsung Electronics for KRW 126 billion (approximately RMB 669 million at the current exchange rate). The acquisition received approval from the French Ministry of Economy and Finance.

In May of the same year, Samsung Medison, a subsidiary of Samsung Electronics specializing in ultrasound technology, publicly announced its intention to acquire Sonio. However, at that time, the acquisition plan had not yet received approval from relevant regulatory authorities, including the French Ministry of Economy and Finance.

Following the completion of this acquisition, Sonio will maintain its status as an independent French company, while Samsung Electronics’ investment will enable it to continue advancing the development of medical imaging technologies and diagnostic software on a global scale.

Sonio, founded in 2020, is a medical technology company specializing in obstetric and gynecologic ultrasound. Its products are characterized by AI-driven management of prenatal ultrasound imaging.

Sonio’s core product is an AI-assisted software named Sonio Detect. This software leverages deep learning algorithms to enhance ultrasound image quality in real time, helping physicians more accurately identify and assess fetal health.

With this software, clinical operators can rapidly and effectively assess fetal cardiac and cerebral structures while meeting other critical quality standards for fetal imaging. Clinical data demonstrate that the software detects cerebral structures with 86% sensitivity and 96% specificity, and cardiac structures with 90% sensitivity and 98% specificity, thereby ensuring the accuracy of ultrasound results.

Currently, Sonio Detect has received FDA 510(k) clearance to automatically generate ultrasound reports and provide image quality control.

It is worth noting that although Sonio has developed only one software product, Sonio Detect, to date, it has already assembled a multidisciplinary team specializing in the intersection of AI technology and women’s health, accumulating substantial technical expertise. Its founding team includes Professor Yves Ville, a member of the French National Academy of Medicine, two fetal medicine specialists, an expert in medical data analysis, and a signal processing specialist.

With the support of Samsung Electronics, Sonio will be able to leverage its team and technological advantages to continue advancing the development of AI-powered ultrasound software. Meanwhile, through this acquisition, Samsung Electronics can achieve a more comprehensive technological layout in the ultrasound sector, particularly in ultrasound systems, and expand its market for high-end obstetric and gynecological ultrasound equipment.

Samsung Electronics’ presence in the ultrasound sector dates back to 2011. Samsung Electronics acquired Medison and integrated it as its medical equipment subsidiary, subsequently renaming it Samsung Medison, which focuses on the development of medical imaging devices such as ultrasound, X-ray, CT, and MRI systems.

Medison was originally a manufacturer of ultrasound diagnostic instruments. It began developing cutting-edge 4D ultrasound diagnostic technology in the 1990s and launched the world’s first 4D ultrasound diagnostic system in 1997. This technology represented a revolutionary breakthrough in the history of ultrasound development, laying the foundation for the subsequent commercialization of ultrasound technologies, particularly 4D ultrasound.

Following the acquisition, Samsung Electronics gained Medison’s portfolio of mature products and its technical team, developing and launching multiple ultrasound products under the name Samsung Medison. These include 3D Crystal Imaging technology for fetal cranial diagnosis, portable color Doppler ultrasound systems, and real-time 4D volumetric color Doppler ultrasound systems.

On the other hand, Samsung Electronics has also engaged in collaborations and mergers and acquisitions in the ultrasound field through its subsidiary, Samsung Medison. It has successively signed cooperation agreements with ultrasound diagnostic companies such as Bracco Imaging and Neusoft Medical to jointly develop high-frequency and super-resolution imaging technologies, thereby driving innovative development in the ultrasound industry.

Samsung Electronics’ massive investment in the ultrasound sector is no accident. According to a research report by Fortune Business Insights, the global ultrasound equipment market was valued at $9.32 billion in 2023 and is projected to grow from $9.99 billion in 2024 to $17.55 billion by 2032.

Looking back at the domestic market, the ultrasound sector is also demonstrating robust growth. According to data from the "White Paper on the Smart Ultrasound Industry" released by VCBeat in 2024, the market size of medical ultrasound equipment in China is expected to continue growing at a compound annual growth rate (CAGR) of 8% over the next five years, reaching RMB 17.91 billion by 2027.

In the domestic market, there are two main competitive entities. One category consists of multinational corporations with strong R&D capabilities and manufacturing prowess, leveraging core technologies and advanced products, such as GE Healthcare, Philips Healthcare, and Siemens Healthineers; the other category comprises large domestic medical equipment enterprises that have mastered certain core technologies, such as Sonoscape Medical, Mindray Medical, and Chison Medical.

In recent years, with advancements in domestic electronic components and software development technologies, the localization rate of complete ultrasound systems has exceeded 80%, prompting many Chinese enterprises to enter the mid-to-high-end ultrasound market.

In 2021, Sonoscape launched the “Fengying” ultrasound system, hailed as China’s first intelligent ultrasound device based on dynamic image automatic detection technology. This system incorporates a range of artificial intelligence technologies, such as S-Fetus, S-Pelvic, S-Thyroid, S-MSK, S-Follicle, and S-GYN, enhancing the convenience, efficiency, and accuracy of physicians’ diagnoses. Additionally, it features specialized functions for obstetrics and gynecology, including fetal heart screening, to meet the specific needs of these specialties.

Furthermore, in 2023, Mindray Medical also launched the ultra-premium ultrasound system Kunlun Resona A20, filling the gap for domestic products in this field. It is reported that this product has achieved innovative breakthroughs in the industry in three aspects: acoustic-electrical data, imaging algorithms, and system computing power, and has realized the commercialization of adaptive beamforming and super-resolution contrast-enhanced imaging technologies.

According to a 2020 report by Frost & Sullivan, Chinese enterprises had captured 70% of the low-end ultrasound market in China, essentially achieving import substitution, while the localization rate in the mid-to-high-end ultrasound market remained low. Four years later, this landscape has shifted, and the localization of mid-to-high-end ultrasound equipment is expected to see significant improvement in the future.