ADAC’s multivendor service program takes aim at Elscint installed base

March 5, 1997

Vendor acquires Florida gamma camera ISOADAC Laboratories is planning to expand its nuclear medicine multivendorservice program to cover the installed base of Elscint gamma cameras.The Milpitas, CA, company last month acquired Photon

Vendor acquires Florida gamma camera ISO

ADAC Laboratories is planning to expand its nuclear medicine multivendorservice program to cover the installed base of Elscint gamma cameras.The Milpitas, CA, company last month acquired Photon DiagnosticTechnologies, a Miami-based independent service organization thatspecializes in service, support, and remanufacturing of Elscintnuclear medicine products.

The Photon acquisition parallels ADAC's 1995 entry into gammacamera multivendor service, when it acquired the capacity to serviceGE and Siemens cameras through its purchase of JD Technical Services,an ISO based in Washington, MO (SCAN 2/14/96). ADAC transferredthe ISO's expertise to its multivendor service arm, ADAC MedicalTechnologies.

ADAC will do the same with Photon, which had revenues in 1996of about $1 million. ADAC chairman and CEO David Lowe estimatesthat the total value of Elscint gamma camera service contractsin the U.S. ranges from $10 million to $13 million.

ADAC will pay about $1.5 million in stock for Photon. In additionto service expertise, ADAC will also acquire Photon's large spareparts inventory, while the company's remanufacturing capacitywill allow ADAC customers to extend the useful lives of Elscintgamma cameras.

ADAC sees multivendor service as a means to generate additionalrevenue by targeting the installed bases of its competitors. Thecompany's service program has enjoyed high levels of customersatisfaction, and its commitment to quality is evidenced by itsreceipt of the Malcolm Baldrige National Quality Award last year(SCAN 10/23/96).

ADAC's multivendor service effort has been progressing wellsince the JD Technical Services acquisition, Lowe said, althoughhe declined to break out revenue numbers for the ADAC MedicalTechnologies business.

"Our market share is increasing, and the outlook for thebusiness is very strong," Lowe said.

In other ADAC news, the company named Cerner and IBM veteranTrace Devanny as COO of its ADAC Healthcare Information Systemsdivision in Houston. Devanny will manage the overall operationof the division, ADAC said.