Galen Partners Buys Pair of Med Imaging Equipment Companies

Galen Partners has acquired and merged two providers of medical imaging equipment: Barrington Medical Imaging LLC and Echoserve Inc. The Golden, Colo.-based parent company is called Medical Imaging Holdings Inc. No financial terms were disclosed.

PRESS RELEASE

Medical Imaging Holdings, Inc., a holding company formed by Galen Partners, today announced it has acquired the businesses of Barrington Medical Imaging, LLC and Echoserve, Inc. The two companies will be combined to create a nationwide, independent service provider for medical imaging equipment across multiple modalities and vendor platforms. The combined company will provide comprehensive imaging solutions to the medical imaging market, including field service, depot repair, parts and proprietary equipment sales, and the sales and installation of refurbished capital equipment. Senior management of Barrington Medical Imaging and Echoserve will remain an integral part of the combined company’s leadership team.

Galen Partners, a leading healthcare private equity firm, formed Medical Imaging Holdings, Inc. in conjunction with Jeff Soinski, a Galen special venture partner and past CEO of one of Galen’s portfolio companies, to build a technology-enabled service platform in the medical imaging market. Galen led the transactions and made a significant investment of growth capital into Medical Imaging Holdings, Inc.

“Reimbursement cuts and the resulting pressure on healthcare costs have created a need for improved efficiency in diagnostic imaging. Galen is proud of its track record of working with proven entrepreneurs to build technology-enabled healthcare companies that have improved provider performance and reduced their costs, including our investments in MedAssets, Pyxis and Chamberlin Edmonds,” commented David Jahns, Managing Director of Galen Partners. “Working with our special venture partners to identify and execute on unique business platforms is an important part of our investment strategy. We look forward to working with this management team to drive organic growth as well as strategic acquisitions.”

Barrington Medical Imaging and Echoserve will continue to conduct business under their existing names and maintain operations at their current facilities during the integration process. It is anticipated that a new name for the combined company will be introduced later this year.

“In the post-Deficit Reduction Act era and in the face of continued pressure on reimbursement rates, controlling costs is critical for hospitals and diagnostic imaging centers,” said Jeff Soinski, Chief Executive Officer of Medical Imaging Holdings, Inc. “By combining the technical capabilities, significant assets and, most important, the talented people of these two successful companies, we are well-positioned to provide high quality, cost-efficient solutions to the medical imaging market.”

“Through the use of proprietary technologies, including a vendor-neutral remote monitoring capability, unique repair capabilities, and deployment of our national network of highly-experienced field service engineers, our combined company will help customers reduce their service costs and enhance service quality levels,” added Christopher Cone, President and Chief Operating Officer. “By providing an enhanced service offering across multiple modalities, including ultrasound, mammography, CT, MRI and patient physiological monitoring, customers can consolidate their service needs to one best-in-class imaging solutions provider.”

About Medical Imaging Holdings, Inc.
Medical Imaging Holdings, Inc. is a private holding company formed by Galen Partners, a leading healthcare private equity firm, to execute a consolidation of high-potential, technology-enabled companies and assets in the medical imaging market. Through its initial acquisitions and subsequent investment, Medical Imaging Holdings seeks to provide comprehensive imaging solutions to its operating company customers and build the pre-eminent third party service provider for medical imaging equipment across multiple modalities and vendor platforms. The company is headquartered in Golden, Colorado.

About Galen Partners
Galen Partners is a leading healthcare private equity firm based in Stamford, CT. The firm focuses on growth equity investments in healthcare technology enabled services, medical devices and specialty pharmaceutical companies. With nearly $1 billion under management raised through five funds, Galen has invested in more than 70 companies since 1990. The partnership seeks opportunities to actively participate as a lead investor in which it can provide between $10 million to $30 million of growth equity capital in healthcare related companies with established revenue. The firm continues a tradition of strategic collaboration and partnership with its portfolio company management teams to build healthcare market leaders. For more information, please visit Galen’s website at www.galen.com.

About Echoserve, Inc.
Echoserve, Inc., based in Golden, Colorado, provides equipment, service and parts sales and repair to hospitals, imaging center, clinics, service organizations and equipment dealers in the physiological monitoring and medical imaging markets, with a primary focus on the ultrasound and mammography modalities. Echoserve is ISO 9001 and 13485 certified. For more information, visit www.echoserve.com.

About Barrington Medical Imaging
Barrington Medical Imaging, based in Cary, Illinois, provides total imaging solutions, specializing in the sales, service and support of refurbished Computed Tomography (CT, CAT), Magnetic Resonance Imaging (MRI), and PET/CT systems. For more information, visit www.bmimed.com.