Nuclear medicine firm Digirad has inked a deal to acquire mobile imaging services provider DMS Health Technologies for $36 million in cash.
Based in Fargo, ND, DMS provides mobile diagnostic imaging and related sales and services to small and regional hospitals throughout the U.S., with a large concentration in the upper Midwest region, Digirad said. It has approximately 250 employees and generated more than $65 million in revenues in 2014.
The acquisition will expand the range of customers serviced by Digirad, as well as provide significant geographical and service-level diversification, according to the vendor. DMS sells mobile MRI, CT, and PET/CT imaging systems, which Digirad currently doesn't offer. In addition, DMS also sells and services equipment from Philips Healthcare.
The transaction is expected to be immediately accretive to Digirad's earnings and cash flow on an adjusted basis, and it will increase Digirad's annual pro forma revenue to over $125 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to over $17 million, according to the vendor. Digirad will acquire the outstanding equity of DMS parent company Project Rendezvous Holding from Platinum Equity.
Subject to the satisfaction of customary closing conditions, the deal is expected to close before the end of the year.
