GE buys Orbotech medical imaging unit

General Electric Company (NYSE: GE) subsidiary GE Healthcare will acquire Orbotech Ltd. (Nasdaq: ORBK) subsidiary Orbotech Medical Systems Ltd. for $9 million in cash, and up to an additional $5 million depending on meeting milestones. The deal is due to close during the first quarter of 2011.
Orbotech Medical Systems develops and manufactures solid state gamma radiation detector modules composed of Cadmium Zinc Telluride (CZT) detectors for nuclear imaging applications. The company's customer include GE Healthcare, Royal Philips Electronics NV (NYSE: PHG; Euronext: PHIA), and Siemens AG (NYSE: SI; XETRA: SIE). GE acquired Orbotech Medical Systems in order to strengthen its position in the three-way rivalry.
Orbotech Medical Systems has 50 R&D employees, and outsources its other activities. The company's cardiology imaging technology provides extensive information on heart function.