Fonar retains investment banker

Fonar has retained an investment banker to assess its MRI operations, the Melville, NY, company announced on March 3. While Fonar executives aren’t providing any details about the firm’s intentions, the company did say that it plans to make “the investment community aware of the new MRI technologies amassed by Fonar from its recent heavy investment in R&D that are expected to enhance shareholder value.”

It’s unclear whether that awareness could translate into a divestiture of the MRI business. Fonar for the last several years has been attempting a comeback in MRI, but the vendor has been stymied by a lack of market interest in its new line of Quad scanners. For the company’s most recent financial period, Fonar recorded only $602,000 in product sales (SCAN 3/3/99).

On the other hand, Fonar has been successful in making acquisitions to increase its healthcare services business, which has been the engine behind the firm’s revenue growth. The company said its retention of an investment banker will help the firm evaluate prospective acquisitions.