Oxford Instruments, plc (Abingdon, Oxfordshire, UK), a leading provider of advanced technology tools and systems for industry and research, reported the acquisition of Platinum Medical Imaging, LLC (Vacaville, CA, USA).

Platinum is being acquired from its management for an initial debt-free, cash-free consideration of USD 18 million with a deferred element of up to USD 37 million payable over three years dependent on its performance over that period.

Platinum is an established company providing high quality parts and services for magnetic resonance imaging (MRI) and computed tomography (CT) medical imaging instruments. It has 33 staff across two sites in the US states of Florida and California, who sell parts, carry out repairs, and do system rebuilds. There is a growing opportunity in this third-party service market in the United States as healthcare reforms encourage medical imaging facilities to move to more cost-effective service providers.

The combination of Platinum with Oxford Instruments’ existing MRI service businesses in North America considerably strengthens the group’s service sector by providing wider service offerings and the opportunity for the further development of global service.

Commenting on the acquisition, Jonathan Flint, chief executive of Oxford Instruments, stated, “This acquisition, which is the first within our Service Sector, is consistent with our 14 cubed objectives to target 14% compound annual revenue growth and return on sales of 14% by 2014. MRI service is the cornerstone of our service sector and with Platinum, our position is substantially strengthened in the US market.”

Guangzhou Jia Yu medical equipment Limited