Siemens acquires CTI Molecular Imaging
19 March 2005
Siemens and CTI Molecular Imaging, Inc. ( Nasdaq: CTMI ) announced that
they have entered into a merger agreement under which Siemens will acquire
CTI. The acquisition will include all the businesses of CTI Molecular
Imaging, Inc., including CTI PET Systems, PETNET Solutions, CTI Mirada
Solutions, CTI Molecular Technologies and CTI Concorde Microsystems. Under
the terms of the agreement, Siemens Medical Solutions USA, Inc., will
commence a cash tender offer within ten business days to acquire all of the
outstanding shares of CTI stock at a price of $20.50 per share. Following
the completion of the tender offer, any remaining shares of CTI stock will
be acquired in a merger at the same price per share. The board of directors
of each company has approved the agreement. The transaction is subject to
customary regulatory approvals and other customary closing conditions, and
is expected to close in the second quarter of 2005. The transaction has a
value of approximately $1 billion.
With this acquisition, Siemens Medical Solutions continues and
strengthens its commitment to molecular imaging development, technological
innovation and the creation of dynamic new technologies that will
revolutionize the diagnosis and treatment of disease.
“This step is a natural progression in our long-time association with
CTI, and reflects Siemens’ overall strategy to transform the delivery of
healthcare by developing trendsetting innovations that improve patient care
while reducing costs,” said Erich Reinhardt, Ph.D., president and CEO,
Siemens Medical Solutions.
CTI Molecular Imaging was established in 1983, focusing on positron
emission tomography ( PET ) and molecular imaging and later extended its
business into research, development and the distribution of PET tracers and
probes. CTI PET Systems ( CPS ) was formed in 1987 as a joint venture
between CTI and Siemens to combine CTI’s expertise in PET technology with
Siemens’ global distribution network.
Michael Reitermann, president of Siemens Medical Solutions Nuclear
Medicine Division, commented, “Molecular medicine will result in more
individualized and more effective diagnosis and therapy. CTI Molecular
Imaging has been actively engaged in next-generation molecular diagnostics
research and the development of new imaging technologies and biomarkers.
This acquisition will enable Siemens to strengthen and broaden our
capabilities in molecular imaging, and define new standards within the
“This acquisition represents the combination of two companies that are
innovation leaders. It will benefit PET imaging’s continued advancement as
well as enhance the future of molecular imaging,” added Ronald Nutt, Ph.D.,
president and CEO of CTI Molecular Imaging.