ROCHESTER, N.Y., Jan. 18 -- Eastman Kodak Co. announced today it will acquire Orex Computed Radiography Ltd. for approximately $50.5 million in cash. Orex, based in Yokneum, Israel, is a provider of compact, robust computed radiography systems that enables medical practitioners to acquire patient x-ray images digitally.
The agreement is subject to regulatory and other approvals and will likely close by the end of the first quarter. Kodak said it anticipates Orex will add approximately $32 million to its revenue in 2005, reflecting approximately 10 months of Kodak ownership, and that the acquisition will be earnings-neutral in 2005 and accretive thereafter. In 2004, Orex's revenue was approximately $28 million.
"The technology and innovation behind the hardware and software that make up Orex's small-format computed radiography (CR) products have resulted in one of the most versatile and flexible compact CR systems on the market," Kodak said. Orex manufactures and markets these systems for specialty markets such as orthopedics, diagnostic imaging centers and dentistry; they are also used for in-room CR needs throughout a medical facility, such as in emergency, pediatrics and intensive care departments, enabling medical staff to stay in close contact with patients during the exam. Almost 4000 OREX systems have been installed in the US, Europe, Japan, China and other parts of the world, and Orex has sold some 250 of these CR units to branches of the US military.
CR systems from Orex are also used by customers in industrial nondestructive testing (NDT) organizations such as pipeline companies, foundries and aerospace manufacturers. Kodak's Non-Destructive Testing unit, will market Orex CR systems to this industry.
Orex was founded in 1996 as Digident (focusing initially on dental CR) and expanded its product line in 2001 to a broader category of specialty medical markets. It has 84 employees worldwide. Orex will remain in Israel and will become a wholly owned subsidiary of Kodak, operating in its Health Imaging Group.
For more information, visit: www.orex-cr.com