Kodak to purchase OREX, supplier of computed radiography products for
Acquisition broadens Kodak's CR portfolio; provides foundation for
18 January 2005
Eastman Kodak Company today announced it has entered into an agreement to
acquire OREX Computed Radiography Ltd., a leading provider of compact,
robust computed radiography systems that enable medical practitioners to
acquire patient x-ray images digitally.
Under the agreement, Kodak would acquire privately held OREX for
approximately US$50.5 million in cash. The agreement is subject to
regulatory and other approvals, and will likely close by the end of the
first quarter. Kodak anticipates that OREX will add approximately US$32
million to Kodak's revenue in 2005, reflecting approximately 10 months of
Kodak ownership. The company also anticipates the acquisition will be
earnings neutral in 2005 and accretive thereafter. In 2004, OREX's revenue
totaled approximately US$28 million.
OREX manufactures and markets systems for specialty markets, such as
orthopaedics, diagnostic imaging centres and dentistry. OREX's systems also
are used for in-room CR needs throughout a medical facility — such as in
emergency, paediatrics and intensive care departments — enabling medical
staff to stay in close contact with patients during the exam. To date,
almost 4000 OREX systems have been installed in the US, Europe, Japan, China
and other parts of the world. To date, OREX has sold some 250 of these CR
units to branches of the US military.
CR systems from OREX are also used by customers in industrial
non-destructive testing (NDT) organisations such as pipeline companies,
foundries and aerospace manufacturers, offering industrial radiographers an
easy digital solution to make image viewing and analysis more efficient.
Kodak's Non-Destructive Testing unit, which designs and produces innovative
digital and film-based NDT solutions, will market OREX CR systems to this
Headquartered in Yokneam, Israel, OREX was founded in 1996 as Digident
(focusing initially on dental CR) and expanded its product line in 2001 to
leverage its expertise into the broader category of specialty medical
markets. With 84 employees worldwide, OREX will remain in its principal
location in Israel, and will become a wholly owned subsidiary of Kodak and
operate within Kodak's Health Imaging Group.