Carestream Health Inc. said Thursday it bought privately held medical imaging software company and equipment distributor Genesis Digital Imaging Inc. as it seeks to expand its reach to the "value-tier" U.S. market. Terms of the deal weren't disclosed.

Rochester, N.Y.-based Carestream said Genesis, which was already distributing Carestream's Vita computed radiography system, sells equipment to some 120 U.S. dealers, who in turn market the supplies to specialty health care organizations.

These dealers mostly served the "value-tier" and specialty markets, Carestream said, making the acquisition complementary to its existing sales channels. Two years ago, Carestream bought Quantum Medical Imaging, a manufacturer of CR and direct radiography products that markets to mid-tier U.S. hospitals and clinics, the company said.

"Genesis' dealer relationships are largely additive to Quantum's and greatly expand Carestream's direct reach with U.S. dealers," the company said in a press release.

Genesis also makes the OmniVue imaging viewing software suite, a "hybrid" PACS and image transmitter OmniOne, and the Web-enabled PACS OmnniArchive.

Carestream said Genesis would be folded into its medical business, but would retain its Los Angeles headquarters. Company President Scott Evers would remain in charge of regional operations and keep his title as president of the Genesis division, while also becoming vice president of Carestream's U.S. and Canada value-tier channels.

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