Accretive acquisition adding $10 million in revenue!
Colorado MEDtech, Inc. Signs a Letter of Intent to Acquire Ultrasound Imaging Products Company
BOULDER, Colo., Oct 14, 1999 (BW HealthWire) -- Colorado MEDtech, Inc.
(NASDAQ: CMED), a Boulder, Colorado-based medical products and services
company, announced it signed a letter of intent to acquire CIVCO
Medical Instruments Co., Inc. ("CIVCO").
CIVCO, a privately held company located in Kalona, Iowa, is a leading
designer and manufacturer of specialized medical products for
ultrasound imaging equipment and procedures and for minimally invasive
surgery equipment and procedures. CIVCO's business focuses on supplying
innovative product design, manufacturing, distribution and support to
the world's leading imaging original equipment manufacturers (OEMs).
CIVCO's annualized revenues are approximately $10 million and it
employs approximately 90 people.
The proposed transaction will be a stock-for-stock acquisition, and
will be accounted for as a pooling of interests. Based upon the
business plans of Colorado MEDtech and CIVCO, the proposed transaction
will be accretive to the earnings of Colorado MEDtech.
"We are looking forward to completing the transaction with CIVCO. They
are a strong and talented group and their business offers many
opportunities for cooperation with our existing businesses, principally
our Imaging and Power Systems division and our CMED Catheter and
Disposables Technology unit," said John V. Atanasoff, President and CEO
of Colorado MEDtech. "CIVCO's technology and products will give us a
further opportunity to strengthen our relationships with our major
imaging customers. We look for this transaction to provide further
growth opportunities and synergies with our core business units."
Victor Wedel, Chairman and CEO of CIVCO, commented, "This is a very
dynamic move for CIVCO. Our businesses complement each other very well
and offer a wide array of talent, manufacturing, R&D, unique imaging
products and a strong, global customer base."
The proposed transaction would be Colorado MEDtech's third acquisition
in calendar year 1999 and its fifth acquisition in the past three
years. Colorado MEDtech, through its wholly owned subsidiaries and
operating divisions, is a leading full-service provider of advanced
medical products and comprehensive outsourcing services.
Forward-Looking Statements
Statements in this news release which are not historical facts are
forward-looking statements subject to risks and uncertainties which
could cause actual results to differ materially from those set forth in
or implied by forward-looking statements, including, but not limited
to, the risk that the acquisition may not close, the risk that if the
acquisition occurs the acquired company cannot be successfully
integrated with the Company's existing operations as contemplated by
the Company, the risk that the Company will not be able to successfully
penetrate the ultrasound equipment and accessory market, and the risk
that a downturn in general economic conditions or customer budgets may
adversely affect research and development and capital expenditure
budgets of potential customers upon which the Company is dependent.
These factors are more fully described in the Company's filings with
the Securities and Exchange Commission, including its Form 10-K for the
year ended June 30, 1999, copies of which the Company will provide on
request.
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
CONTACT: Colorado MEDtech, Inc., Boulder
John V. Atanasoff, President and CEO
Stephen P. Hall, CFO
Phone: 303/530-2660; Fax: 303/581-1010
E-mail: cmedinfo@cmed.com
Website: www.cmed.com
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