NOVEMBER 18--Eastman Kodak Company (Rochester, NY) will acquire Algotec Systems Ltd., a developer of advanced picture-archiving-and-communications systems (PACS) technology based in Raanana, Israel (www.algotec.com), in a move that improves Kodak's competitive position in the growing market for PACS technology. PACS technology enables radiology departments worldwide to digitally manage and store medical images and information.
Kodak plans to acquire privately held Algotec for $42.5 million in cash and expects the transaction to close by year's end. Algotec will become the "center of excellence" for developing Kodak medical PACS products and attendant 3-D imaging technologies.
"This move will bolster our current PACS development efforts and will give Kodak greater leverage in a market growing at 15%--20% annually," said Dan Kerpelman, president of Kodak's Health Imaging Group (www.kodak.com/go/health) and a senior vice president of the company. "We will own Algotec's intellectual property, including its unique source code--ideal for developing products in the rapidly growing category of Web-enabled PACS. By fully utilizing this intellectual property, we will create a stream of compelling product innovations and, in doing so, will accelerate the growth of our business."
Algotec and Kodak have had a close relationship since May of last year. At that time, the two companies signed an agreement under which Algotec began providing supplemental software for the development of Kodak's PACS products.