GE Medical Systems has announced a definitive agreement to acquire Elscint’s 50% share in ELGEMS, a joint venture formed by the two vendors in 1997 to manufacture nuclear medicine systems. As a result of the $30 million transaction, Haifa, Israel-based ELGEMS will become a wholly owned business of Waukesha, WI-based GE.
ELGEMS is responsible for the research, development, engineering, and manufacturing of all GE gamma cameras and other nuclear medicine products. The transaction is subject to government regulatory reviews and approvals, as well as other customary closing conditions. GE expects the deal to close by the end of October.
Elscint will remain involved with ELGEMS, however. Concurrent with the acquisition agreement, ELGEMS also announced a sourcing agreement with Elscint. Elscint will continue to act as the primary source for the various components used in ELGEMS nuclear medicine products, according to the firms.
By AuntMinnie.com staff writersAugust 31, 2000
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