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TAMPA -- A managed network services company that says it has experienced positive growth since coming out of bankruptcy in 2008 has a new owner.
Vasomedical Inc. of Westbury, N.Y., says it has acquired NetWolves LLC for $18 million, including all its proprietary technology and intellectual properties. The Tampa-based company had revenues of $28 million and $30 million, respectively, over the last two fiscal years, Vasomedical says in a release, and had adjusted operating income of $1.2 million and $1.4 million over that time.
“The NetWolves acquisition is extremely important to the future success of Vasomedical,” says Jun Ma, the company's president and CEO, in a release. NetWolves, according to Ma, will eliminate Vasomedical's need to build a technology infrastructure for its health care IT business.
“NetWolves, as a standalone private entity, has been a growing and profitable business for over six years,” Ma says.
That growth began after NetWolves completed a Chapter 11 bankruptcy protection it started in 2007. Helping it get back on its feet at the time was $4 million in exit financing from Axiom Capital Management.
Vasomedical, which trades over-the-counter under the symbol VASO, reported a loss of $252,000 on revenues of $7.5 million for the quarter ended March 31. That was compared to a $1 million loss the year before on revenues of $7.1 million.
Vasomedical and NetWolves have had a relationship at least since 2010, when NetWolves president and CEO Peter Castle joined the New York health care services company's board. The company didn't say what positions Castle and other members of his executive team would have after the acquisition.
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