Samsung Medison, Lee Geon-hee's New Growth Engine, Acquires French AI Startup 'Sonio'

Enhancement of AI Diagnostic Assistance and Diagnostic Result Reporting Technology

Samsung Medison, nurtured as a 'new growth engine' business by the late Lee Kun-hee, former chairman of Samsung Group, has decided to acquire the French AI-based medical technology startup 'Sonio.' This is the first merger and acquisition (M&A) by Samsung Electronics Chairman Lee Jae-yong after overcoming legal risks. Through this acquisition of Sonio, Samsung plans to strengthen AI in medical devices and lay the foundation for growth.

On the 8th, Samsung Electronics announced that its subsidiary Samsung Medison signed a stock purchase agreement to acquire Sonio, a French AI startup with obstetrics and gynecology ultrasound diagnostic reporting technology. This marks Samsung Medison's first M&A.

Samsung Medison showcased its AI-based diagnostic assistance features at the 33rd Annual Scientific Meeting of the International Society of Ultrasound in Obstetrics & Gynecology (ISUOG 2023), held from October 16 to 19 last year at COEX in Samseong-dong, Seoul.
[Photo by Samsung Electronics]

Samsung Medison was acquired by Samsung in 2011. The late chairman Lee announced in 2010 five new growth engines?solar cells, automotive batteries, LED, bio, and healthcare?as the future pillars of Samsung and promoted the acquisition of Medison as part of this strategy.

Sonio develops IT solutions and AI diagnostic assistance functions that help medical professionals easily manage patients' diagnostic histories and details through obstetrics and gynecology ultrasound diagnostic software.

Sonio's AI diagnostic assistance feature for obstetrics and gynecology, 'Detect,' automatically recognizes diagnostic cross-sections for fetal condition measurement, evaluating screen quality and appropriateness. It has obtained FDA approval for sale and secured large-scale supply contracts in the United States. The AI diagnostic reporting system, which quantifies ultrasound scan results and organizes them systematically, is cloud-based, offering the advantage of lowering initial investment costs for customers.

Through the acquisition of Sonio, Samsung Medison plans to secure excellent AI development talent in Europe and further enhance its medical AI solutions by integrating Sonio's AI diagnostic assistance and reporting technologies. Additionally, through technical collaboration with Sonio, it is expected to reduce the time required for medical professionals' diagnoses and improve diagnostic quality.

Samsung Medison's operating profit is expected to exceed 100 billion KRW this year. Samsung Medison has recorded rapid growth over the past three years. Sales have steadily increased, with 397.3 billion KRW in 2021, 485.1 billion KRW in 2022, and last year, it achieved a record high with sales of 517.4 billion KRW and an operating profit of 86.4 billion KRW.

Kim Yong-kwan, CEO of Samsung Medison, said, "We will work together with Sonio, which has superior ultrasound reporting and AI technology compared to competitors, to improve the quality of life for pregnant women worldwide through medical advancement."

Meanwhile, this M&A is expected to lead to a significant increase in Samsung's investments. Since Samsung has continuously invested in new growth industries that can be highlighted as national competitiveness, it is anticipated that this trend will continue.

Last year, Samsung made a strategic equity investment in the robotics company Rainbow Robotics, and Samsung's automotive and audio subsidiary Harman made a bold acquisition of the music management, search, and streaming platform 'Roon.' In the same year, Samsung Display acquired the US OLED (organic light-emitting diode) display company eMagin for about 300 billion KRW, launching its attack on the XR (extended reality) market.