Swissray nears sale of x-ray assets

October 9, 2002

The first company to introduce a digital radiography system in the U.S. may soon be sold. Swissray International announced Sept. 24 the signing of a nonbinding letter of intent with a U.S.-based private equity firm to acquire all the outstanding shares

The first company to introduce a digital radiography system in the U.S. may soon be sold. Swissray International announced Sept. 24 the signing of a nonbinding letter of intent with a U.S.-based private equity firm to acquire all the outstanding shares of Swissray's capital stock. Swissray has installed its CCD-based ddR (direct digital radiography) systems in the U.S., Europe, the Middle East, and Asia. The company began shopping for a buyer in February at the behest of its major shareholder Hillcrest Avenue, which owns more than 52 million of the company's 91 million common shares. The letter provides for a limited exclusivity period in which to conduct due diligence, to agree on the form and terms of the transaction, and to enter into a definitive contract. Neither Swissray nor its major stockholders may pursue other potential buyers during this time. If the letter of intent is terminated, sale to another buyer within six months will require Swissray to pay a penalty.