Kodak to purchase OREX, supplier of computed radiography products for specialty markets

Acquisition broadens Kodak's CR portfolio; provides foundation for continued growth

18 January 2005

Eastman Kodak Company today announced it has entered into an agreement to acquire OREX Computed Radiography Ltd., a leading provider of compact, robust computed radiography systems that enable medical practitioners to acquire patient x-ray images digitally.

Under the agreement, Kodak would acquire privately held OREX for approximately US$50.5 million in cash. The agreement is subject to regulatory and other approvals, and will likely close by the end of the first quarter. Kodak anticipates that OREX will add approximately US$32 million to Kodak's revenue in 2005, reflecting approximately 10 months of Kodak ownership. The company also anticipates the acquisition will be earnings neutral in 2005 and accretive thereafter. In 2004, OREX's revenue totaled approximately US$28 million.

OREX manufactures and markets systems for specialty markets, such as orthopaedics, diagnostic imaging centres and dentistry. OREX's systems also are used for in-room CR needs throughout a medical facility — such as in emergency, paediatrics and intensive care departments — enabling medical staff to stay in close contact with patients during the exam. To date, almost 4000 OREX systems have been installed in the US, Europe, Japan, China and other parts of the world. To date, OREX has sold some 250 of these CR units to branches of the US military.

CR systems from OREX are also used by customers in industrial non-destructive testing (NDT) organisations such as pipeline companies, foundries and aerospace manufacturers, offering industrial radiographers an easy digital solution to make image viewing and analysis more efficient. Kodak's Non-Destructive Testing unit, which designs and produces innovative digital and film-based NDT solutions, will market OREX CR systems to this industry.

Headquartered in Yokneam, Israel, OREX was founded in 1996 as Digident (focusing initially on dental CR) and expanded its product line in 2001 to leverage its expertise into the broader category of specialty medical markets. With 84 employees worldwide, OREX will remain in its principal location in Israel, and will become a wholly owned subsidiary of Kodak and operate within Kodak's Health Imaging Group.


To top