Kodak acquires Algotec for $42.5 million
Eastman Kodak Company announced today that it will acquire Algotec Systems Ltd, a developer of advanced picture-archiving-and-communications systems (PACS), which enable 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 the end of the year. Algotec will become the 'centre of excellence' for developing Kodak medical PACS products and attendant 3D 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. 'We will own Algotec's intellectual property, including its unique source code, which is ideal for developing products in the rapidly growing category of web-enabled PACS.'
Banc of America Securities' '2003 Hospital CIO Survey' indicates that almost 60% of chief information officers in US hospitals plan to purchase PACS within the next three years. The price of a PACS system ranges from $500,000 to $3 million or more, depending on exact requirements.
'Algotec's technology will put us in a better-than-ever position to capitalise on this opportunity,' Kerpelman said, 'as will changes we are making in our field operations.'