(Yicai Global) Nov. 1 -- Yanhua Smartech Group plans to buy a 45 percent share of a Chinese firm that supplies in-vitro diagnosis products to Abbot Laboratories as it looks expand its portfolio of services.

The Shanghai-based buyer will pay CNY184.5 million (USD26.2 million) for the stake in Beijing Taihekang Medical Bio-Technology, it said in a statement yesterday. The target specialists in IVD products, clinical immune system diagnosis devices and reagents, consumables and medical testing.

Taihekang has solid relationships with more than 20 first-class hospitals in Beijing, the statement added, saying this was its first move into IVD services and it hopes to further expand toward digitizing hospitals and medical treatments and offering third-party diagnoses.

Shares in Yanhua had climbed 2.83 percent to CNY3.63 (52 US cents) on the news as of 9.48 a.m.

Yanhua will pay for the stake with CNY100 million in immovable property and the remainder in cash, per the purchase agreement signed with Taihekang's sole shareholder. It did not disclose details of the real property.

The buyer is also open to cooperation with the target firm and will leverage its client network in Beijing to push its own products into new markets, the statement added.

Editor: James Boynton