Healthcare Industry News: Alliance Imaging
News Release - November 5, 2007
Alliance Imaging Announces Fourth Quarter Acquisition
ANAHEIM, Calif.--(HSMN NewsFeed)--Alliance Imaging, Inc. (NYSE:AIQ ), a leading national provider of diagnostic imaging services, announces that its affiliate, Alliance Oncology, LLC, purchased the assets of eight radiation therapy centers in Alabama, Arkansas, Mississippi, and Missouri from Bethesda Resources, Inc., a wholly-owned subsidiary of Sonix, Inc. Many of these cancer centers are sole community providers and are located on or near hospital campuses. Several of these radiation therapy centers operate under certificates of need (“CONs”). The total purchase price consists of approximately $36 million in cash and assumed debt. Annualized revenue from this acquisition is expected to total approximately $14 million. The acquisition was financed through internally generated funds, borrowings under credit facilities, and capital leases.Paul S. Viviano, Chairman of the Board and Chief Executive Officer, stated, “We are very pleased to announce the acquisition of such high quality and well regarded radiation therapy centers. Bethesda is a good fit with Alliance given that many of the Bethesda centers are sole community providers which are located on hospital campuses with the benefit of CONs. This transaction provides a platform for further growth of Alliance Oncology and positions us well to take advantage of other de-novo and acquisition opportunities in the radiation therapy sector. The Bethesda acquisition will be accretive and will add only modest leverage to our balance sheet.”
About Alliance Imaging
Alliance Imaging is a leading national provider of shared-service and fixed-site diagnostic imaging services, based upon annual revenue and number of diagnostic imaging systems deployed. Alliance provides imaging and therapeutic services primarily to hospitals and other healthcare providers on a shared and full-time service basis, in addition to operating a growing number of fixed-site imaging centers. The Company had 470 diagnostic imaging systems, including 310 MRI systems and 76 PET or PET/CT systems, and served over 1,000 clients in 43 states at September 30, 2007. Of these 470 diagnostic imaging systems, 74 were located in fixed-sites, which includes systems installed in hospitals or other buildings on or near hospital campuses, medical groups’ offices, or medical buildings and retail sites. The Company also operates three radiation therapy centers as of September 30, 2007.
Forward-Looking Statements
This press release contains forward-looking statements relating to future, not past, events. In this context, forward-looking statements often address our expected future business and financial results and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks” or “will.” Forward-looking statements by their nature address matters that are uncertain and subject to risks. Such uncertainties and risks include difficulties the Company may face in connection with the announced acquisition, including unexpected costs or liabilities resulting from the acquisition, diversion of management’s attention from the operation of the Company’s business as a result of the acquisition and risks associated with integration of the acquisition, and other risks and uncertainties identified in the Risk Factors section of the Company’s Form 10-K/A for the year ended December 31, 2006, and Form 10-Q for the quarter ended June 30, 2007, in each case filed with the Securities and Exchange Commission. These uncertainties may cause actual future results or outcomes to differ materially from those expressed in the Company’s forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake to update its forward-looking statements except as required under the federal securities laws.
Source: Alliance Imaging
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