With its acquisition of Ronkonkoma, N.Y.-based Quantum Medical Imaging, a privately-held manufacturer of X-ray systems used by hospitals, imaging centers and health clinics, Carestream Health has bolstered itself with a substantial portfolio of conventional and digital X-ray technologies, and better-positioned itself to penetrate the small and mid-sized hospital market.
Quantum Medical Imaging’s portfolio will help enhance and complement Carestream’s product line, execs say, and the merger will enable Carestream to better serve the specialized imaging needs of community hospitals and clinics worldwide. Likewise, Quantum Medical Imaging’s dealers and customers will have access to Carestream Health’s innovative medical imaging and healthcare IT solutions.
Diana Nole, president of Carestream's Digital Medical Solutions business, said her company began researching firms that could help Carestream better serve smaller providers last year. Quantum "by far had the best match in terms of their portfolio," she says.
Moreover, in general terms, "they had a very good reputation on quality," said Nole, and the deal was appealing from a "synergy standpoint and a culture standpoint."
Quantum will benefit from the deal too, most notably with better penetration into foreign markets. Whereas Carestream does roughly 70 percent of its business abroad, “Quantum doesn't have the reach into the international market that we have," says Nole. "We plan to take their products as quickly as we can outside the U.S."
Kevin Hobert, Carestream's CEO, lauded Quantum's president and CEO Scott Matovich. “I’m thrilled to welcome Scott and his talented Quantum Medical Imaging team to Carestream Health,” Hobert said. “[He] and his team have created very reliable, innovative and easy-to-use products and, with their strong dealer network, they have earned a reputation for outstanding customer satisfaction. The Quantum team brings great people, great products and new business partners to Carestream Health.”
Quantum Medical Imaging sells both digital radiography (DR) and conventional X-ray systems; computed radiography (CR) systems; and X-ray system components. The company serves hospitals, imaging centers, orthopedic facilities and medical clinics by providing high-quality, affordable medical imaging solutions appropriate for their unique needs.
“Our team has done a tremendous job serving customers and building a strong business, achieving consistent growth over the last decade with even greater long-term potential,” said Matovich. “By joining forces with a global healthcare solutions provider of Carestream Health’s caliber, we are further advancing and accelerating our growth trajectory. We will continue our sharp focus on providing innovative imaging solutions for healthcare providers that place a premium on quality, value and success.”
Quantum's dealers and the customers they serve will see significant benefits from this acquisition as they will have access to a substantially larger portfolio of advanced Carestream products including CR systems; the DRX-1 family of wireless digital upgrades; entry level RIS/PACS and archive solutions; and medical film printers.
Quantum will be integrated into Carestream Health’s Digital Medical Solutions business. It will operate as a wholly-owned subsidiary and will remain in Long Island, where it recently extended the lease on its headquarters and manufacturing facility through 2018. Matovich will continue running Quantum’s operations and will report to Nole. Matovich also will manage Carestream Health’s U.S. dealer channel business.
