National Diagnostics to merge with AES

March 4, 1998

Brandon, FL-based imaging services chain National Diagnostics has signed a definitive agreement to merge with integrated delivery system firm American Enterprise Solutions of Tampa, FL. Under the terms of the agreement, NDI shareholders will maintain a

Brandon, FL-based imaging services chain National Diagnostics has signed a definitive agreement to merge with integrated delivery system firm American Enterprise Solutions of Tampa, FL. Under the terms of the agreement, NDI shareholders will maintain a 12.3% interest in the new company, with AES shareholders holding an 87.7% interest. The combined company will have projected 1998 pre-tax profits of $4.5 million on revenues of roughly $46 million, according to the firms.

NDI agreed to the merger after suffering financial difficulties related to the company's rapid expansion. NDI had fallen behind on payments to vendors and lessors, and the firm's stock was delisted from the NASDAQ exchange in August 1997. AES was founded in September 1997 with the goal of acquiring companies to create community healthcare delivery systems.

In other NDI news, Jugal Taneja has resigned his post as chairman and CEO. COO Curtis Alliston has assumed the role of acting CEO.