E-Systems activity continues with plan to buy teleradiology firm Image Data

October 26, 1994

E-Systems insider says deal is close to completionE-Systems continuesto make waves in the PACS and teleradiology industry. The firmis close to completing a deal to acquire teleradiology vendorImage Data, according to sources within the company.

E-Systems insider says deal is close to completion

E-Systems continuesto make waves in the PACS and teleradiology industry. The firmis close to completing a deal to acquire teleradiology vendorImage Data, according to sources within the company.

E-Systems has been closely watched by industry observers forthe past several months. The Dallas-based company has been unusuallyactive on a corporate level but has kept mum about its intentions.

The company laid off 13 workers last month from Advanced VideoProducts, the PACS firm that E-Systems acquired in 1992 (SCAN9/28/94). A month later, E-Systems bought two archival firms,Advanced Archival Products and Grau Automation, and said it plannedto merge them into a new subsidiary, EMASS (SCAN 10/12/94).

The deal with Image Data of San Antonio, TX, was reported tobe close to completion, according to a source at E-Systems. ImageData has been a company in play for some time and has had discussionswith several potential partners. A merger deal with Genesys fellthrough in January of last year (SCAN 1/27/93 and 12/30/92).

Image Data has pursued a business plan of forming co-marketingarrangements with major PACS vendors such as Kodak, Du Pont, Cemaxand others to add teleradiology solutions to their PACS offerings(SCAN 8/10/94). Image Data's partnering strategy is based on itsTelerouter interface system, which is customized to function withthe proprietary protocols of individual PAC systems.

A deal with Image Data would dramatically increase E-Systems'presence in the growing teleradiology segment, but E-Systems willhave to walk a tightrope in managing its new acquisition. An E-Systems/ImageData alliance might run afoul of Image Data's co-marketing partners,many of whom are competitors with AVP in the PACS arena.

Officials at E-Systems and Image Data were unavailable forcomment as of press time.