Holding company acquires heart monitoring specialists Digital Diagnostics Imaging for $11M
Kingsway Financial Services, a Chicago-based holding company with subsidiaries in several industries, has acquired New Jersey-based Digital Diagnostics Imaging (DDI) for $11 million. The transaction was funded with $5.4 million in cash and $5.6 million in debt financing.
DDI offers around-the-clock cardiac monitoring telemetry services to nursing homes, long-term acute care hospitals and inpatient rehabilitation hospitals. Its remote technicians track electrocardiogram results around the clock, alerting the appropriate hospital employee within three minutes when any issues are identified. Healthcare providers can also watch live streams of a patient’s ECG or reach out to the company to acquire real-time data if necessary. DDI currently has contracts in 42 states.
As a result of this acquisition, Peter Dausman, operator-in-residence for this transaction, will be named DDI’s new CEO. Its former CEO, co-founder Thomas Corney, will serve as an advisor during a transition period.
“DDI is a dominant player in remote cardiac monitoring with a solid reputation and strong customer referrals that fuel a growing pipeline of new opportunities,” Dausman said in a statement. “Importantly, its business has a high level of recurring revenue, is scalable and operates in a stable, growing market. In assessing this acquisition, it became clear that DDI is the industry standard for outsourced telemetry. I am eager to work with the team to learn more and with a disciplined approach, take this business to the next level.”
“My wife Marissa and I are pleased to transition our business to Peter and the team at Kingsway,” Corney added. “Kingsway's approach to business and its care for customers and employees align directly with the values that are core to everything we do at DDI. Over the last decade we have grown this business from a start-up to more than $4 million in annual revenue. We have long been recognized both for the services we provide and the care we give our customers.”
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.