A Diagnostics & Imaging Week
Onex (Toronto) reported completing the acquisition of the Center for Diagnostic Imaging (CDI; Minneapolis) in a transaction valued at about C$225 million.
CDI is a major provider of diagnostic and therapeutic radiology services, operating 31 diagnostic imaging centers in nine markets in the U.S. Its imaging services include MRI, computed tomography (CT), diagnostic and therapeutic injection procedures and other procedures such as positron emission tomography (PET), PET/CT, conventional X-ray, mammography and ultrasound. Annual revenues are more than $125 million.
"The company's industry leadership position, commitment to quality of services and advanced processes make CDI an excellent platform upon which to grow. We look forward to working with CDI's strong management team to continue to achieve profitable growth within the business," said Robert Le Blanc, an Onex managing director.
The acquisition was undertaken through Onex Partners, which invested about C$93 million in the equity for an 84% ownership interest. The balance of the equity was purchased by members of the CDI management team. Onex is an approximate 24% limited partner in Onex Partners and controls the general partner.
Onex, one of Canada's largest diversified companies, reports annual consolidated revenues of about $16 billion and consolidated assets of about $13 billion. It has global operations in service, manufacturing and technology industries. In other dealmaking activity:
BestNet Communications (Grand Rapids, Michigan) and Pacific Biometrics (PBI; Seattle) said they are negotiating a stock purchase agreement and an asset purchase and management agreement.
Under the stock purchase agreement, PBI will issue Series A convertible preferred stock, representing 25% of the voting power, in PBI Technology (PBI Tech), a wholly owned subsidiary of PBI, to BestNet for $1 million.
Under the asset purchase and management agreement, Dharma, a wholly owned subsidiary of BestNet, will purchase all assets relating to PBI's proprietary Osteopatch and SalivaSac technologies, and engage PBI Tech to manage the further development and application of Osteopatch and SalivaSac, for which BestNet will issue to PBI shares and warrants up to a total of 25% of the outstanding shares of BestNet, and fund operations of Dharma for $500,000.
Stanley Schloz, president of BestNet, said, "In the emerging era of targeted and personalized medicine, innovative diagnostic technologies will become critical components of healthcare delivery. Investment in PBI Technology is part of our strategy to invest in emerging technologies with large potential markets."
Ron Helm, CEO of PBI, said, "PBI Technology was created with the specific purpose of developing and commercializing our technologies and to offer an attractive investment opportunity to strategic and/or financial investors who are focused on innovative diagnostic technologies."
PBI provides specialized central laboratory services to support diagnostic and pharmaceutical manufacturers conducting human clinical trial research. The company provides services in the areas of cardiovascular disease, cholesterol and lipid abnormalities, diabetes, obesity, metabolic syndrome, osteoporosis and arthritis. It also owns several patented and patent-pending technologies, including molecular diagnostic and noninvasive device technologies.
BestNet is a provider of long-distance conference calling, ClicktoPhone and custom application-based communication services. Its services are accessed worldwide via the Internet, standard phones and wireless devices and are delivered using standard phone lines and equipment.