Sources inform ''Globes'' that Merge Healthcare Inc. (Nasdaq: MRGE) has closed the Israeli operations of Ophthalmic Imaging Systems (OIS), which it acquired in June 2011 for $30 million in a share swap. At the time of the acquisition, OIS's R&D center in Haifa had 20 employees, and the company had an annual turnover of a few million dollars. The sellers were Mori Arkin and Dr. Uri Geiger's Accelmed and Yokne'am-based MediVision Medical Imaging Ltd. (EuroNM: MEDV).
Following the acquisition, layoffs and resignations whittled the workforce at the R&D down to ten employees.
Merge Healthcare develops imaging, data processing, and clinical management solutions for cardiology, orthopedics, and radiology. OIS develops and manufactures digital imaging and informatics solutions for ophthalmology and eye clinic management solutions.
OIS was founded in 1984, and was bought by Medvision, founded by Gil and Noam Alon, and Ariel Shenhar in the 1990s, in 2001. Agfa Healthcare and Israel's Intergamma Investment Ltd. (TASE:INTR) were the main investors in the company. Medivision went public on the Brussels Bourse in 2001, and acquired OIS, which had supplementary solutions, with the proceeds.
OIS engaged in two activities. One, based in Israel, was an attempt to develop a better camera for eye exams; the othert was the development in the US of computerized eye clinic management systems. The US operations better suited Merge Healthcare, making it logical to forego the Israeli operations.
The sale of OIS was Accelmed's first exit. Following the sale, Accelmed gradually sold Merge Healthcare shares. Medivision became a stock market shell, which owned $84 million worth of Merge shares.
Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2012
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