DHS closes ultrasound acquisition

April 2, 1997

Imaging services firm Diagnostic Health Services of Dallas announced last month that it has closed its acquisition of the ultrasound division of Diagnostic Imaging Services of Los Angeles. The division was acquired for a combination of $7.5 million in

Imaging services firm Diagnostic Health Services of Dallas announced last month that it has closed its acquisition of the ultrasound division of Diagnostic Imaging Services of Los Angeles. The division was acquired for a combination of $7.5 million in cash and assumption of $1.5 million in debt.

The deal completes the first part of a transaction between Diagnostic Health and DIS that was announced earlier this year (SCAN 1/22/97). In the second part of the acquisition, Diagnostic Health will buy four hospital-based MRI centers owned by DIS. DHS estimates that the ultrasound and MRI acquisitions will add $11 million in revenues to the company.

In other Diagnostic Health news, the company last month reported financial results for 1996 that show revenues rising 41%. For the year, DHS posted revenues of $24.2 million, compared with $17.1 million in 1995. The company's net income was $2.5 million, compared with $1.2 million the year before.

DHS chairman and CEO Max Batzer said that the DIS acquisitions, along with several other of the company's purchases, will bring the company to a run rate of approximately $50 million for 1997.