Diagnostic Imaging buys teleradiology co
This article was originally published in Clinica
Diagnostic Imaging International (DII), a Las Vegas, Nevada-based operator of diagnostic imaging clinics, is to acquire Canadian Teleradiology Services (CTS), a company specialising in remote site-to-site transmission of medical imaging scans. CTS, founded in 2005, recorded gross revenues of over Can$870,000 (US$707,000) in 2007 from its contract with four public hospitals run by Bluewater Health of Ontario, Canada. Its revenues are expected to grow as the company starts offering teleradiology services to other public hospitals in South Western Ontario. "While teleradiology is a large business in the US that provides a crucial service to the healthcare industry, it is still in its infancy in Canada where CTS is located and is now positioning itself to be a leader in the field," said DII, which has medical imaging clinics in both the US and Canada. The acquisition agreement includes a Can$400,000 upfront payment, as well as an earn-out of three million DII shares, based on CTS' revenue performance for fiscals 2009-11.