Billion dollar image

Siemens is to buy positron emission tomography supplier CTI Molecular Imaging in a $1 billion dollar deal.


Siemens is to buy positron emission tomography (PET) supplier CTI Molecular Imaging in a $1 billion dollar deal.


The acquisition will include all the businesses of CTI Molecular Imaging, including CTI PET Systems, PETNET Solutions, CTI Mirada Solutions, CTI Molecular Technologies and CTI Concorde Microsystems.


Under the terms of an agreement between the two companies, Siemens Medical Solutions USA will acquire all of the outstanding shares of CTI stock at a price of $20.50 per share. Following the completion of the tender offer, any remaining shares of CTI stock will be acquired in a merger at the same price per share.


CTI Molecular Imaging was established in 1983, focusing on positron emission tomography (PET) and molecular imaging and later extended its business into research, development and the distribution of PET tracers and probes. CTI PET Systems (CPS) was formed in 1987 as a joint venture between CTI and Siemens to combine CTI’s expertise in PET technology with Siemens’ global distribution network.


In fiscal year 2004, CTI reported sales of $402 million and income from operations of $58 million.


The deal is subject to customary regulatory approvals and other customary closing conditions, and is expected to close in the second quarter of 2005.