CMED Completes Purchase of Magnetic Resonance Imaging Equipment Manuf. ERBTEC
BOULDER, Colo.--(BW HealthWire)--Oct. 1, 1997--Colorado MEDtech Inc. (NASDAQ:CMED), a Boulder-based medical products and services company, today announced it has completed the acquisition of the operating assets of Erbtec Engineering Inc. (Erbtec).
The purchase was completed for $5.35 million cash and issuance of 88,708 shares of CMED common stock, resulting in a total purchase value of approximately $6.1 million, including acquisition costs.
Erbtec, located in Boulder, had annualized revenues of approximately $12 million and income before taxes of approximately $2 million. Erbtec's main products are high-power radio frequency (RF) amplifiers and systems for Magnetic Resonance Imaging (MRI) equipment.
The business of Erbtec will be conducted through a CMED operating division under the name Erbtec Engineering, and CMED has hired all of the former Erbtec employees. Lee Erb, the founder of Erbtec, will become vice president, technology, for CMED. Erbtec will continue its operations at its present location in Boulder, a 20,000-square-foot leased facility.
``We are excited to have Erbtec Engineering join CMED. We believe they have an outstanding RF product capability that will strengthen our engineering and financial performance,'' said John V. Atanasoff, president and chief executive officer of Colorado MEDtech Inc.
Colorado MEDtech is an integrated custom product development and manufacturing services company specializing in the design, development and manufacture of electronic and electromechanical products and software systems for the medical device industry.
--------------------------------------------------------------------------------
Contact:
Colorado MEDtech Inc., Boulder
John V. Atanasoff or Bruce L. Arfmann, 303/530-2660
E-mail: cmed@rela.uucp.netcom.com
Web Site: cmed.com |
