Swissray to divest Empower as part of restructuring effort

Swissray to divest Empower as part of restructuring effort

Digital radiography developer Swissray International last month announced that it has signed a letter of intent to sell its Swissray Empower U.S. film and x-ray accessories division, a business it acquired less than a year ago. Swissray said it was making the move as part of a corporate reorganization designed to focus the company on digital imaging.

Swissray acquired Empower in April 1997 as part of the company's aggressive effort to offer a wide range of products and services to customers. The decision to divest Empower may be a sign that the company's plan may have been a bit ambitious, however. Swissray also has multivendor service and PACS subsidiaries, in addition to its conventional and digital x-ray manufacturing business (PNN 2/98).

Swissray will sell Empower to distributor E.M. Parker, based in Wilmington, MA. Terms of the transaction are still being negotiated, with a completion date expected during the current fiscal year, according to Swissray of New York City.

The company's board of directors has also announced that it has decided to restructure its senior management as part of a plan to grow Swissray beyond a developmental-stage company, said Ruedi Laupper, chairman. A search is under way for a new CEO and CFO. In the meantime, primary management responsibility will be held by a newly formed executive committee of the board of directors, consisting of Akbar Seddigh, Daniel Wuersch, and Dr. Erwin Zimmerli. Laupper, who previously also held the titles of president and CEO, retains primary responsibility for day-to-day operations.

The vendor is also reviewing its strategic focus, and is preparing a long-term business and financial plan so that the company can raise capital to successfully implement its strategy over the next two years. In an earlier release, Swissray disclosed that it planned to enter into immediate negotiations with a group of investors to finance the firm's short-term and medium-term capital needs.

In other Swissray news, the company has sold another AddOn-Multi-System to Dutchess Radiology Associates, of Poughkeepsie, NY. Financial terms of the sale were not disclosed.

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