Vasomedical, Inc. (OTCMKTS:VASO) reported the acquisition of 100% stake in NetWolves, LLC and affiliates on May 29, 2015. Dr. Jun Ma, the President and Chief Executive Officer, said that the announced acquisition is extremely vital to the future success of company, both operationally and strategically, as it immediately removes a need to develop a comprehensive technology infrastructure for company’s recently introduced healthcare IT business.
Dr. Ma further added that it further expands business into network services particularly for the clients in healthcare provision, where secure, reliable and high-fidelity network connectivity is in demand. More significantly, it offers a platform for significant potential growth in the rapidly growing telemedicine and related healthcare markets.
Dr. Ma added that NetWolves, when taken as a stand-alone private firm, has been a profitable and growing business for more than six years. The newly acquired firm will be integrated into Vasomedical’s healthcare IT business to provide training and support, and execution services to healthcare IT operation.
It gives an opportunity of significant up-selling and cross-selling for proprietary managed network offerings to the prevailing entrenched countrywide client base in the diagnostic imaging segment. The management is extremely excited by the deal and is more optimistic about the scope of new healthcare IT division as Vasomedical have established a robust technical and customer foundation.
NetWolves and its affiliates have been active in managed network services with a broad, proprietary service platform. The company clients are under multi-year deals which provide Vasomedical with a recurring revenue generation model to complement its existing operations. FY2013 and FY2014 revenues were almost $28 million and $30 million, respectively. The adjusted operating income was almost $1.2 million and $1.4 million in FY2013 and FY2014, respectively.
In last trading session, the stock price of Vasomedical, Inc. (OTCMKTS:VASO) surged more than 9% to close the trading session at $0.180.