Eclipse Medical Imaging, Vacaville, CA and Platinum Medical Parts, Deerfield Beach, FL have verbally agreed to merge their operations, DOTmed News has learned.

Eclipse Medical Imaging is known for its expertise in GE, Siemens and Philips CT; Platinum focuses on GE MRI.

"Eclipse operates with a very high level of credibility and integrity, stemming from the quality of the product and service they put on the market. Their specialty is GE CT, while Platinum focuses on MR. So we will now have full modality and geographic coverage," said Dave Band, an industry veteran who will serve as CEO of the combined company. "It will be a beautiful marriage."

The new firm will provide turnkey system sales to market segments including oncology, radiology, and veterinary medicine. They will provide replacement parts, service contracts and a full line of refurbished CT and MRI systems, as well as distribution of selected new components. The combined company, whose name has not been announced as of press time, is expected to complete organizational and legal incorporation to begin operations January 1, 2010.

"It is a merger of strengths, not one company taking over another," said Jeffrey Fall, President, Platinum Medical Parts, LLC. "We will be filling a void in the market. Customers are having their capital and operating budgets slashed and they need a way to provide the latest and greatest technology to patients and save money on service and backup machines. We now have demand from customers that wouldn't have talked to independent companies like us five years ago."

Synergies between the two companies include their similar size and quality-focused business philosophies. Collectively, they will integrate staffs totaling about 35 senior executives, MBAs, physicists, biomedical engineers, sales, marketing, and support people. Personnel is expected to expand after the merger.

In addition to Eclipse's current 17,000 square-foot facility in northern California and Platinum's 27,000 square-foot facility in Florida, the new company will open another 25,000 square-foot, state-of-the-art facility about two miles from Eclipse's current home. Platinum will close out its third year in business and Eclipse is closing out its ninth year in 2009.

"If you look at the industry as a whole and all the changes happening in the health care arena from reductions in reimbursements, people are looking outside the scope of the OEMs for service, equipment and parts to keep costs down, while keeping the quality at the same level expected from the OEMs," said Robert Costa, CEO, Eclipse Medical Imaging. "Right now, no company offers that complete solution. Some are strong in radiology, some oncology. But together we can cover all those check marks for customers and clients. That is the exciting news--that we are able to offer something that nobody else can."

The merger grew in part out of frequent customer requests from each company for services in the other's modality.

"From the Platinum perspective it expands the modalities and manufacturers we can offer in terms of products and services to our customer base," Fall said. "This is truly unique in that it is a merger of two companies that are doing well and want to do better. When we examined our collective financial situations we wanted to do the merger and went in as equal partners."

The news falls closely on the heels of another merger of independent service organizations. As reported in DOTmed News, Echoserve, Barrington, and Sonora were acquired by Medical Imaging Holdings, Inc. earlier this month.

More Industry Headlines