Medical Imaging merger: Volcano Acquires Sync-Rx for $17.25 Millions
25 November, 2012
Sync-Rx was founded by RDC Rafael Development Corp. in 2007, and developed an add-on online image processing workstation for coronary catheterizations
Volcano Corporation (Nasdaq: VOLC) from San Diego, California announced today announced that it has entered into a definitive agreement to acquire Sync-Rx Ltd., a privately-held company based in Israel that develops advanced software applications that optimize and facilitate transcatheter cardiovascular interventions using automated online image processing. The closing of the transaction is expected within the next 30 days. The total value of the transaction is valued at about $17.25 million.
Sync-Rx was founded in 2007 and developed an add-on online image processing workstation for coronary catheterizations. The emerging use of imaging catheters (such as IVUS and OCT) generates images that are displayed completely separately from the X-Ray, with no association between the two types of imaging. Sync-Rx Sustem feature automated online co-registration of the X-Ray with endo-luminal imaging, building upon the unique algorithms developed in the company.
Since its inception, Sync-Rx has been financed by Israel-based RDC Rafael Development Corp., owned jointly by Elron and the electronics defense company Rafael. RDC also incubated the Israeli Given Imaging Ltd. which invented the PillCam for directly visualizing the small bowel to detect, diagnose and monitor abnormalities.
“We are excited about the Sync-Rx team joining Volcano and establishing a footprint in Israel, given the breadth and depth of medical imaging and software talent there”, said Scott Huennekens, President and Chief Executive Officer of Volcano Corporation. “Sync-Rx’s technology will allow Volcano to better integrate and present a wide variety of data in an intuitive manner that creates more meaningful information for the physician and documentation for the hospital”.
For the first nine months of 2012, Volcano reported revenues of $279.4 million, an increase of 11 percent on a reported basis and 12 percent on a constant currency basis versus the same period a year ago. The company reported net income of $5.5 million, or $0.10 per diluted share, compared with net income of $8.7 million, or $0.16 per diluted share, in the first nine months of 2011.