GE Medical Systems to acquire Imatron

GE Medical Systems, a unit of General Electric, has signed a definitive agreement to acquire Imatron, a pioneer of Electron Beam Tomography (EBT) scanners.

In this transaction, each Imatron shareholder will receive $1.89 per share payable in GE stock.

The actual number of shares of GE stock that each Imatron shareholder will receive will be determined based on the trading prices of GE stock for a period of time prior to the closing of the transaction.

Imatron’s EBT scanner performs high volume imaging applications for physicians specialising in the fields of Cardiology, Pulmonology, and Gastroenterology.

Imatron EBT scanners are currently in use at more than 150 major medical facilities and imaging centres around the world.

The transaction, which is subject to regulatory and Imatron shareholder approvals and other customary conditions, is expected to close by year-end 2001.

In connection with the definitive agreement, Imatron granted GE an option to acquire newly issued shares of Imatron common stock, representing 19.9% of its total shares outstanding, at the $1.89 per share transaction price.

In addition, shareholders representing 11% of the Imatron shares outstanding on a fully diluted basis have agreed, among other things, to vote their shares in favour of the proposed transaction.

The Board of Directors of Imatron has unanimously approved the transaction.