Rochester, NY-based Carestream Health has purchased Quantum Medical Imaging, based in Ronkonkoma, NY for an undisclosed sum. While the two imaging companies have some similar x-ray imaging products, their markets and overall portfolios position the new Carestream for future growth.
Quantum is best known in the United States and manufactures DR, analog x-ray systems, CR systems, and x-ray system components. Its customers are mainly smaller facilities, such as imaging centers, orthopedic facilities and medical clinics.
Carestream has a wider portfolio and is known for its more sophisticated lines of DR, CR, and other platforms, as well as health informatics and molecular imaging products.
Markus Lusser, senior vice president of global medical sales and service for Carestream, said that while the two companies have some product similarities, both also had gaps in their product line and traditional markets.
“We were focusing on state of the art products on the higher end of the portfolio,” said Lusser, “but when we look at the value segment—products for smaller hospitals, products for clinics, and products that doctors offices are buying—that’s where we clearly had a gap in our portfolio.”
Quantum will now fill in Carestream’s value product line, offering smaller customers analog and digital imaging platforms that are less expensive than Carestream’s more sophisticated line that includes its wireless DR detectors and DR-X Evolution x-ray platforms.
The other aspect of the Quantum acquisition is that the two companies have very different geographic demographics. Seventy percent of Carestream’s business is derived from customers outside the U.S.; Quantum is far less international, having only 10% of its sales from outside of the U.S.
Consequently, the merger allows the U.S. market of both companies to have more exposure to Carestream’s premium lines and broader portfolio of products through Quantum. At the same time, Carestream’s non-U.S. customers will have access to x-ray products that are potentially more cost-competitive outside the U.S.
As for branding, the two companies will retain their individual corporate identities for now.
Diana Nole, president of digital medical solutions for Carestream said, “Our observation is that in the spaces that Quantum plays, they have a very strong brand from their relationships and product portfolios; so in the U.S., we don’t see that really changing, at least not in the near term.” To note the new acquisition to customers, the brand will be slightly altered to “Quantum Medical Imaging, a division of Carestream Health.”
Outside the U.S., due to Carestream’s stronger presence, Nole says that the company will likely introduce Quantum’s products under the Carestream brand.
In addition, Quantum has signed a new lease at its Ronkonkoma headquarters, although Carestream says that the two companies are already working together to further their synergies and integration.
Visit Carestream or Quantum’s websites for further information on the acquisition.
