Digirad Corporation has completed the acquisition of Ultrascan, a provider of mobile ultrasound and nuclear medicine services primarily in Georgia.
Ultrascan currently provides mobile ultrasound services to more than 100 clients through a 32-unit mobile fleet as well as fixed-site nuclear imaging services at physician offices, clinics and hospitals primarily in Georgia.
"This transaction diversifies Digirad's services and expands our client base. It is a first step in our strategy to create long-term growth by leveraging and complementing Digirad's nuclear cardiology service capabilities with other mobile imaging services,” said Mark Casner, chief executive officer, Digirad. “Ultrascan has differentiated its services and added value to its well-established operating platform by building a close working relationship with one of the leading medical institutions in the southeast. We believe this is an important strategic asset that will enhance our competitiveness in the southeast market, and provides a model for our approach as we expand in other areas."
Mickey King, president and CEO of Ultrascan, said, "We believe that the combination of Ultrascan and Digirad creates growth opportunities in both ultrasound and nuclear imaging, and will provide added value to our combined customer base.”
King said the company’s mobile imaging delivery capability and client base align well with Digirad's nuclear cardiology services.
The acquisition totaled $7.25 million in cash and the assumption of $1.5 million of debt. The acquisition also includes the possibility of up to $3.85 million in cash and stock if Ultrascan achieves certain EBITDA milestones over four years.