Cedara completes acquisition of eMed Technologies
TORONTO – Cedara Software Corp., a leading independent developer of
medical software technologies for the global healthcare market,
announced today that it has completed the acquisition of eMed
Technologies Corporation of Burlington, Massachusetts, a privately held
provider of Picture Archiving and Communications Systems (PACS) and
web-based medical imaging radiology solutions.
For the year ended December 31, 2003 eMed posted approximately US$24
million in revenue, US$3 million in net income and US$5 million in cash
flow from operating activities. On closing, eMed’s balance sheet
included cash of approximately US$19 million and no debt.
In accordance with terms disclosed when the original agreement was
announced, Cedara paid US$48 million in cash for eMed. Cedara financed
the net cash disbursement of approximately US$29 million to complete the
transaction with approximately US$14.5 million from its own cash
reserves and approximately US$14.5 million from its new credit facility
with the Royal Bank of Canada.
Now a wholly-owned subsidiary of Cedara Software Corp., eMed will
immediately be a valuable complementary addition to the company. For the
past three consecutive years, eMed has been rated as one of the top
three PACS vendors by KLAS, which independently ranks healthcare and
PACS vendors. According to Cedara, EMed stands out particularly in the
quality of its customer support services. It also has very successful
sales, marketing, technical service and systems integration capabilities
that will complement Cedara’s engineering and R&D capabilities.
In addition, eMed’s sizable installed base of hospital and imaging
centers across the United States will provide an excellent opportunity
for the eMed sales force to promote Cedara’s clinical applications and
image management technologies. At the same time, Cedara will use its
extensive global channel to promote eMed solutions worldwide.
“I am delighted that we have completed the transaction to bring eMed and
Cedara together. We can now concentrate on the job of growing the
combined business and maximizing value for our customers, employees and
investors,” said Abe Schwartz, Cedara president & CEO.
“The combination of Cedara and eMed significantly expands our overall
presence and impact in the growing medical industry. The transaction
enables each of us to leverage our considerable competitive strengths,
ushering in a new era of growth for our business,” said Mark Smith, eMed
Mark Smith has agreed to stay on as CEO of eMed. No material change to
the structure of the organization is envisioned.
eMed recently debuted its Matrix PACS solution, the only such solution
built with the Microsoft .NET smart client architecture. Matrix offers a
new generation of technologies for connecting information, people,
systems and devices. The smart client technology of Matrix maximizes the
power of the PC for easy deployment, maintenance and improved client
performance, the company said.
Cedara Software Corp. is a Canadian provider of medical technologies for
many of the world’s leading medical device and healthcare information
technology companies. Cedara software is deployed in hospitals and
clinics worldwide – approximately 20,000 medical imaging systems and
4,600 Picture Archiving and Communications System (PACS) workstations
have been licensed to date.
The company’s medical imaging solutions are used in all aspects of
clinical workflow, including the capture of patient digital images; the
sharing and archiving of images; sophisticated tools to analyze and
manipulate images; and even the use of imaging in surgery.
Cedara is unique in that it has expertise and technologies that span all
the major digital imaging modalities including angiography, computed
tomography (CT), echo-cardiology, digital X-ray, fluoroscopy,
mammography, magnetic resonance imaging (MRI), nuclear medicine,
positron emission tomography (PET) and ultrasound.