Orbotech enters new area for imaging technologies by purchasing the assets of Imarad Imaging Systems
Mar 22, 2005
ORBOTECH LTD. (NASDAQ/NM SYMBOL: ORBK) announced that it has signed an agreement to purchase the assets of Imarad Imaging Systems Ltd., a privately held Israeli company which develops and manufactures high-performance, solid state gamma radiation detectors based on its innovative Cadmium Zinc Telluride (CZT) crystal-growth technology. These detectors will initially be used in the field of nuclear medicine.
Orbotech Medical Solutions Ltd. ("OMS"), a wholly-owned subsidiary of Orbotech Ltd., will acquire all the assets of Imarad for $7 million. In addition, subject to the achievement of agreed milestones, OMS will make payments to Imarad on sales through the end of 2008, up to a maximum of $26 million.
OMS also announced a new strategic alliance with GE Healthcare, a $14 billion dollar unit of General Electric Company (NYSE: GE). Through this agreement, GE Healthcare, a leading provider of diagnostic imaging products and services, will become a preferred customer of OMS for solid state radiation detectors developed on the basis of the CZT technology.
Commenting on the announcement, Mr. Rani Cohen, Co-President - Business and Strategy, of Orbotech Ltd., said: "Imarad has developed a highly innovative, enabling solid-state detector technology which is capable of facilitating significant improvements in image quality and diagnostic capabilities, as well as substantial cost savings, over currently available, analog-based nuclear medicine imaging solutions. We believe that there is a very substantial growth potential for advanced technology solutions that surmount existing limitations and specifically address critical customer needs in the expanding area of medical imaging.