Jiuan Medical Expands Overseas Market with €93.88 Million Acquisition of French Mobile Health Company eDevice

On June 28, 2016, Andon Health Co., Ltd. proposed to raise no more than RMB 710 million through a private placement of shares to acquire the French company eDevice for €93,884,347. Upon completion of the transaction, Andon Europe will acquire 100% of the equity interest in eDevice held by the counterparties in cash.

It is reported that eDevice, the target company of this transaction, was founded in 2000 and is an internationally leading provider of data information system solutions for medical devices. At its inception, eDevice focused on the research and development of Internet of Things (IoT) products. After a period of development, leveraging its strengths in hardware and software for network communications, eDevice began to expand into the mobile healthcare industry in 2007 and launched its core product line, the WireX series.

The WireX series provides customers with data system solutions for medical devices, dedicated to enabling efficient, stable, secure, and encrypted extraction, transmission, and remote monitoring of patient vital signs data for large medical device manufacturers and healthcare service providers. Currently, the number of devices from the target company in use by end-users has reached 350,000 units.

eDevice's Profitability in Recent Years:

eDevice’s core business is divided into two categories: sales of mobile medical products and provision of medical data transmission and communication services to customers.

1. Mobile Health Products

Leveraging years of expertise in network communications and adhering to relevant communication protocols, eDevice has developed a series of mobile health communication products that establish robust data transmission links with medical devices already in early-stage production or clinical use by its clients (medical device manufacturers or healthcare service providers).

By using this product series, customers can not only collaborate with their own medical devices to remotely collect patient data but also ensure stable and secure data transmission over long-distance communications.

Currently, eDevice’s mobile healthcare communication products mainly include WireX3GLC, WireT, Cellgo, and HealthGoMini. The number of units deployed has exceeded 350,000, with customers including major medical device manufacturers and healthcare service providers such as Medtronic, Philips, and Honeywell.

HealthGo Mini is an award-winning, low-power sensor hub device from eDevice’s HealthGo family platform. It acquires, monitors, and transmits medical data to the cloud for remote patient monitoring (RPM) applications, enabling specialists at healthcare centers to effectively manage treatment for patients with chronic conditions and those requiring long-term care.

Mini is compatible with the latest Bluetooth standards, enabling seamless integration with medical peripherals and flexible acquisition of health data, including blood pressure, body weight, blood oxygen saturation, and glucose levels.

Meanwhile, HealthGo Mini is a complete, ready-to-use standalone product that can also be paired with the HealthGo App on a tablet or smartphone. The app can be configured to ask a series of personalized questions, provide healthcare professionals with easy-to-interpret clinical images, and deliver patients’ most up-to-date medical data.

eDevice's Product: HealthGo Mini

2. Medical Data Transmission and Communication Service Products

In addition to the sales of mobile medical products, eDevice also provides customers with a comprehensive suite of solutions, including remote data transmission and remote monitoring, charging service fees based on the number of devices deployed.

Its communication services primarily include data transmission over cellular networks and the provision of a remote monitoring platform to assist customers in monitoring various devices.

Cellular Network Data Transmission

Based on the data transmission principles and methods of eDevice’s medical communication products, raw vital signs data are collected and extracted, then transmitted to the customer’s server via cellular networks (2G/3G) or Ethernet.

Currently, by collaborating with French and international telecom operators, we provide customers with global cellular data transmission services as a Mobile Virtual Network Operator (MVNO), offering comprehensive data transmission solutions.

Remote Monitoring and Management Services

To assist clients in better monitoring and managing end-user information and device information, eDevice provides a remote monitoring program port. Clients can perform functions such as flagging and monitoring abnormal data, global positioning of devices, and device monitoring and management.

CellGo: A compact cellular modem that enables devices to access 2G/3G cellular networks via a serial port.

WireT: A cost-effective network adapter that enables electronic health devices equipped with analog modems to connect to a user’s broadband router/modem via standard cabling as an external network accessory over Ethernet/LAN networks. This network adapter facilitates the transition of authorized medical devices from legacy PSTN technology to Ethernet/LAN connectivity with minimal regulatory impact.

eDevice's products CellGo and WireT

As a publicly listed company focused on the healthcare sector, Andon Health’s core business involves the research and development, manufacturing, and sales of home-use medical electronic products.In 2011, Andon Health launched its first iHealth product., and has evolved to the present day,The iHealth product series covers five dimensions: blood pressure, blood glucose, body weight, blood oxygen, and physical activity.。

As a technology company that originated in hardware manufacturing, Andon Health created the world’s first smartphone-connected blood pressure monitor and wireless blood pressure monitor.

From 2011 to 2013, Andon Health expanded overseas by establishing subsidiaries in the United States, France, and other countries, thereby launching the “global journey” of its mobile healthcare business.

In Andon Health’s strategic planning, the “Mobile Internet Health Cloud Service Model,” characterized by the integration of “smart hardware + mobile applications + cloud-based services,” serves as the core of its future development. Continuously strengthening each component of this strategy remains a long-term commitment for Andon Health.

During its development, Andon Health actively sought collaborations with outstanding companies both domestically and internationally. In 2014, Andon Health entered into a strategic cooperation agreement with Xiaomi to jointly build a mobile healthcare platform. In 2015, the BloomSky smart weather monitoring device was successfully developed, capable of simultaneously monitoring humidity, temperature, atmospheric pressure, UV index, and rainfall.

To further consolidate Andon Health’s R&D advantages and better expand into overseas markets, Andon Health has reached a merger and acquisition agreement with the French company eDevice. This move not only facilitates product and business collaborations between Andon Health and leading global enterprises such as Medtronic, Philips, and Honeywell, but also lays a solid foundation for expanding sales channels, enhancing brand influence, and accelerating the company’s internationalization.

In the future, the two parties will not only integrate their efforts in product research and development but also leverage their respective existing customer channels and business resources to penetrate customer bases and extend along the industry chain. This will expand the overall business scale and enhance Andon Health’s profitability, thereby achieving synergistic effects.