American Shared deal passes FTC muster

The Federal Trade Commission has signed off on Alliance Imaging’s proposed acquisition of the mobile imaging business of American Shared Hospital Services, the companies reported last week. The firms said that the FTC had concluded its review of the deal without requiring any changes in the terms of the transaction.

Anaheim, CA-based Alliance announced in March that it intended to buy the mobile imaging routes operated by San Francisco-based American Shared for $13.6 million and the assumption of debt. In June the companies reported that the FTC had requested additional information about the sale, perhaps because of concerns about Alliance’s rise to prominence in mobile imaging through several recent acquisitions (SCAN 6/10/98). The mobile imaging market remains highly fragmented, however, which may have led the agency to let the deal go forward.

The sale is now subject to approval by American Shared’s stockholders, who will meet on Nov. 13 to vote on the deal. After the sale, American Shared plans to focus on its Gamma Knife radiosurgery and Operating Room of the 21st Century businesses. The company’s fifth Gamma Knife project, a collaboration with Yale-New Haven Health Ambulatory Services, began in July. The company has two projects in development and recently signed another two contracts, according to chairman and CEO Dr. Ernest Bates.

In other American Shared news, the company announced third-quarter financial results (end-September) that indicated revenues of $10.4 million, up 11% compared with sales of $9.4 million in the same period a year ago. Revenue growth was driven by a 144% increase in Gamma Knife revenues and a 7% increase in MRI revenues. American Shared’s net income for the quarter was $451,000, compared with $446,000 in the third quarter of 1997.