Kodak to Acquire Orex

Eastman Kodak Co. (Rochester, NY, USA) has entered into an agreement to acquire Orex Computed Radiography Ltd. (Yokneam, Israel), a provider of compact, computed radiography (CR) systems that enable clinicians to attain patient x-ray images digitally. Under the agreement, Kodak would acquire privately-held Orex for about US$50.5 million in cash. Kodak anticipates Orex will add about $32 million to Kodak's revenue in 2005, reflecting approximately 10 months of Kodak ownership.

The technology and innovation behind the software and hardware that make up Orex's small formatted CR products have resulted in extremely versatile and flexible compact CR systems. Orex manufactures and markets these systems for specialty markets, such as diagnostic imaging centers, orthopedics, and dentistry. These systems also are suitable for in-room CR requirements throughout a medical facility--such as pediatrics, emergency, and intensive care departments--enabling medical staff to stay in close contact with patients during the exam.

"Acquiring Orex--whose compact CR products are leading in their market segments--is in strategic alignment with plans to market our digital medical imaging and information products to customers in specialty medical markets worldwide,” remarked Dan Kerpleman, president, Kodak's Health Imaging Group. "By augmenting our own highly successful CR product line, we can provide a broader array of CR solutions to meet the needs of large and small practices alike.” The acquisition will also enhance the marketability of Orex systems because they will be supported by Kodak's considerable resources, including technology and global sales reach.

"Kodak has the customer focus, the breadth of digital image capture, PACS [picture archiving and communications systems] and print solutions, an excellent track record in CR systems, and the global resources to further enhance and better serve Orex's existing and new customers in specialty markets like no one else can,” stated Hillel Bachrach, president and CEO of Orex. "All of us at Orex see tremendous opportunity ahead as a result of joining Kodak, which is one of the world's truly great brands.”




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