Prime Medical Services Inc. on Feb. 20 completed the acquisition of lithotripsy equipment manufacturer and service provider Medstone International Inc.
Medstone manufactures lithotripsy systems and urology tables and provides fee-per-procedure lithotripsy services.
The Aliso Viejo, Calif. firm has more than 130 lithotripters in operation worldwide and more than 325 urology and patient handling tables in use in the urology office and hospital markets.
Medstone posted revenues of $21 million for the 12-month period, ending Sept. 30, 2003. The total includes $16 million in service revenue and $5 million in equipment sales.
Prime Medical President and CEO Brad A. Hummel said the company sees the acquisition as "an opportunity to broaden Prime's urology platform and further our prominence in the $450 million lithotripsy market.
"Most importantly," he continued, "we see Medstone as an opportunity to add benefit to our physician partners by creating more efficient and economic access to the clinical tools they employ in their practices."
Under the transaction, Medstone shareholders will receive 0.96 shares of Prime common stock for each share of Medstone common stock they held, equivalent to $5 of Prime common stock based on the average closing price for the 30 trading days immediately preceding the third trading day before the closing of the transaction.
A total of approximately 3.6 million Prime shares will be distributed to Medstone shareholders.