The bubble just popped. Did you hear it? Pfzzzzzz.
There it goes. The digital FIRE SALD of 2009 is likely over. Hope you got in while the getting was good.
Sometimes the rumors are true.
Sound Technologies purchased Eklin Medical systems. Oh my.
What does this mean to the practice who has an Eklin System? What does that mean for veterinarians who were just about to purchase a system and are sitting on an Eklin or Sound quote? What were the reasons behind this merger? What is in it for Antech/VCA/Sound Technologies? Will the Sound platform change? Will there be a squashing of products? Will the salesperon who promised you the world be with the company in 6 months? Time will tell.
Thank you for all of your calls and emails over the last 2 weeks about this rumor. Currently, I do not have any more information than you cannot find online. No Easter eggs this time. I expect to have more for you soon.
Stay tuned. As I get more information about the implications of this news you can be sure that it will make it to your inbox.
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VCA Antech, Inc. Completes Merger With Eklin Medical Systems,
Inc.
Merger Makes VCA Antech the Largest Supplier of Diagnostic
Imaging Equipment and Other Medical Technology Products to
the Veterinary Market
LOS ANGELES, July 1, 2009 (GLOBE NEWSWIRE) -- VCA Antech, Inc.
(Nasdaq:WOOF), a leading animal healthcare company in the United States,
announced today that it has acquired Eklin Medical Systems, Inc., a
leading seller of digital radiology (DR), ultrasound and practice
management software (VIA) systems in the veterinary market.
VCA Antech, Inc. established its medical technology segment with the
acquisition of Sound Technologies, Inc. in October 2004. The combined
company will be the largest supplier of diagnostic imaging equipment and
other medical technology products to the veterinary market.
"We are combining the two leading providers of digital imaging in the
veterinary market -- Sound Technologies and Eklin," said Bob Antin,
chairman and CEO of VCA Antech. "In addition to the strength of Sound
Technologies' product line, Eklin also has an outstanding reputation and
a product line with strength in all sectors, particularly the equine
market. Combining the two companies' technologies and senior management
teams establishes us as the industry leader. Under the guidance of Sound
Technologies' Steve Eyl, who will continue as president of Sound Eklin,
we look forward to using our leadership position to support
state-of-the-art medicine in the veterinary market, by providing the
most advanced diagnostic tools in a cost-effective manner."
With more than 475 hospitals employing over 2,000 veterinarians, VCA
Antech, Inc. owns, operates and manages the largest networks of
freestanding veterinary hospitals and veterinary-exclusive clinical
laboratories in the country. VCA Animal Hospitals had approximately 6.6
million patient visits during last year alone and the Antech lab
division provided diagnostic testing for over 16,000 clients. VCA also
supplies diagnostic imaging equipment to the veterinary industry through
its Sound Technologies division.
"The combination of VCA Antech's Sound Technologies division and Eklin
will provide the ability to offer veterinary care providers much broader
and deeper technology solutions, customer education and customer care,"
said Gary R. Cantu, chairman and CEO of Eklin. "This is a capital
intensive industry with continual challenges when it comes to investment
in new technologies and customer support. The timing is right to combine
these two leaders, from a market and a personal standpoint. After
several previous attempts to retire, I feel comfortable entrusting the
future of the company to the capable management teams at VCA Antech and
Eklin."
Cantu will be stepping down to spend time with family, continue angel
investments and work on outside board activities.
"Sound Technologies and Eklin truly have revolutionized the veterinary
care industry," said Bob Antin. "We believe that joining these two
entities together will create a significant technology advantage. The
combination of expanded services and talented people from both
organizations create a far stronger and larger company which will
greatly benefit the profession."
About VCA Antech, Inc.
VCA Antech is the leading provider of pet health care services in the
country with a nationwide clinical laboratory system and over 475
free-standing animal hospitals. VCA Antech has an excellent reputation
in the pet health care industry caring for approximately five million
animals annually. VCA Antech has achieved this position by acquiring and
managing high quality veterinary practices, providing preeminent
diagnostic laboratory services for animal hospitals across the country
and supplying diagnostic imaging equipment to the veterinary industry.
For further information, visit www.vcaantech.com.
The VCA Antech, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4252
Statements in this release that are not historical are forward-looking
statements. These statements are based on management's current beliefs
and expectations, including the statements as to the expected growth,
innovation and other benefits of the combination of the two companies.
Actual results may vary substantially as a result of a variety of
factors. Among the important factors that could cause actual results to
differ are: the ability to successfully integrate the two companies and
achieve expected operating synergies following the merger; the rate of
the Company's laboratory internal revenue growth and animal hospital
same-store revenue growth; the level of direct costs and the ability of
the Company to maintain revenue at a level necessary to maintain
expected operating margins; the level of selling, general and
administrative costs; the effects of the Company's recent acquisitions
and its ability to effectively manage its growth and achieve operating
synergies; a continued decline in demand for some of the Company's
products and services; any disruption in the Company's information
technology systems or transportation networks; the effects of
competition; any impairment in the carrying value of the Company's
goodwill; changes in prevailing interest rates; the Company's ability to
service its debt; and general economic conditions. These and other risk
factors are discussed in the Company's periodic reports filed with the
Securities and Exchange Commission, including the Company's Report on
Form 10-K for the year ended December 31, 2008, and the reader is
directed to these statements for a further discussion of important
factors that could cause actual results to differ materially from those
in the forward-looking statements.
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CONTACT: VCA Antech, Inc.
Tomas Fuller, Chief Financial Officer
(310) 571-6505
