Cedara Software Corp. on Tuesday signed a $48 million agreement to acquire RIS, PACS and teleradiology provider, eMed Technologies Corp. of Burlington, Mass. And two days later, eMed obtained the necessary shareholder consent for Cedara to acquire all of its issued and outstanding shares.
Paying for eMed through a combination of its own cash reserves and bank financing, Cedara said that eMed will become a wholly owned subsidiary of Cedara. The acquisition is expected to close within approximately 30 days.
Cedara CEO Abe Schwartz said, "Together, the companies going forward will be a much better, stronger combined company. There will be opportunities to capture greater market share, increase job opportunities, and develop better product capabilities for our customers".
Cedara noted eMed's sizeable installed base in the United States as a good opportunity for its sales force to promote Cedara's clinical applications and other image management technologies. In turn, Cedara said it intends to utilize its strong global channel to promote eMed systems worldwide.
The combined company will have approximately 350 employees in the United States and Canada.
"After years of working together, each organization has a genuine respect for the products and skills we collectively bring to the market," said Mark Smith, eMed CEO. "This transaction will enhance our ability to introduce powerful new products and allow us to expand internationally, creating further opportunities to expand our combined business." Smith has agreed to stay on as CEO of eMed. No material change to the structure of the organization is envisioned, according to Cedara.