Radiology data sharing vendor Enlitic to acquire rival for $5M
Radiology data sharing firm Enlitic is acquiring a rival for nearly $5 million, the two announced Aug. 29.
The Fort Collins, Colorado-based company is purchasing all shares of Laitek Inc., a major provider of medical imaging data migration and routing services in the U.S. Founded in 1980, Laitek reported $6.8 million in revenue last year from its direct and original equipment manufacturing customers, employing a team of 55 in the U.S. and Romania.
Enlitic called the acquisition a “strong strategic fit,” offering the opportunity to apply its products to historical imaging data while also moving critical technology in-house.
“Our proposed acquisition of Laitek will be transformational for Enlitic from a capability and financial perspective,” CEO Michael Sistenich said in a statement. “Our combined capabilities should allow us to accelerate our market penetration through delivering greater value to our clients and addressing multiple long-standing operational challenges such as data migrations and storage, data standardization and the transition to cloud solutions,” he added later.
The acquisition is subject to several conditions such as approval by Enlitic’s shareholders and the company being able to raise the necessary capital. In a separate announcement Sept. 2, Enlitic said it had received binding commitments to raise approximately $15.2 million in new equity, which it will use to fund the deal and for other corporate purposes.
Enlitic—which also has offices in Australia and trades on the country’s stock exchange—was founded in 2014. The company uses artificial intelligence to develop software products that manage medical imaging data and it also licenses such products to providers. Sistenich and colleagues plan to fund the deal with $4 million in cash from the proposed capital raise and $950,000 via the issuance of new common stock.
Enlitic expects to realize annual cost savings of $1 million by the first full year of ownership and revenue synergies of $5 million from the third year onward. The combined business is expected to create a “potential pipeline opportunity” of up to $108.4 million with “significant potential revenue synergies and cost efficiencies,” according to the announcement. The two noted their “comparable customer base,” with alignment existing in many aspects of “team structure and infrastructure.”
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.