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NMS Capital Announces Partnership and Investment in DirectMed Parts & ServiceNMS Capital ("NMS") announced today that it has partnered with Company management in the recapitalization of DirectMed Parts & Service, LLC ("DirectMed" or the "Company"). Terms of the transaction were not disclosed. Headquartered in San Diego, CA (News - Alert), DirectMed is the largest independent source for service and supply of medical imaging parts for MRI and CT machines. Leveraging its inventory of 60,000+ parts across 5,000+ unique SKUs, the Company provides 24/7 solutions to major OEMs, such as GE, Siemens, and Philips (News - Alert), and to independent service organizations (ISOs), imaging centers, hospital systems, and parts suppliers across North America, Latin America, and Europe. The Company's staff of electrical engineers, physicists, and technicians supports customers who require an efficient, price-effective solution to getting imaging equipment back online. As the complexity and cost of repair and maintenance of technical equipment increases and budgets remain stagnant, hospitals and care providers increasingly turn to aftermarket parts and equipment providers to support continued operations. The global 2021 third-party medical imaging equipment market is estimated at $4.8 billion, and is expected to exceed $6.2 billion by 2026. It is critical for health systems and imaging centers to leverage the independent channel and maximize the useful lives of capital-intensive equipment. "DirectMed has developed and acquired internal repair capabilities and made material investments in inventory and fixed assets to set us up for our next phase of growth," said Brad de Koning, DirectMed's President & CEO. "Working with NMS to analyze and finance acquisitions and to assess opportunities for expansion into new diagnostic imaging modalities will accelerate our progress. With its depth of knowledge in the medical imaging equipment industry, NMS provides tremendous benefits to our cusomers and to our team." Tanner LoRusso, co-founder and VP, Sales at DirectMed, stated, "The investment from NMS will enhance DirectMed's data-driven sales approach, breadth of inventory and engineering capabilities, furthering our customer-centric commitment to high quality parts and repairs. As a co-founder of the Company, it has been rewarding to see DirectMed build its position in the marketplace. I am proud to partner with NMS - a leading healthcare services investor - to execute our next phase of expansion." David Peterson, NMS Managing Director, remarked, "The DirectMed management team has built an impressive business with a truly differentiated and unique model. NMS is excited to partner with the DirectMed team given our shared vision in building upon their leadership position in the imaging parts and service sector. Our investment in DirectMed is a continuation of NMS' theme-based approach to identifying differentiated opportunities in targeted sectors. NMS has spent multiple years assessing opportunities across the medical equipment repair industry, and we were immediately impressed with DirectMed's positioning and operating model. Their proven strategies, depth of engineering expertise, and highly experienced and knowledgeable management team make us confident in the future of DirectMed. We look forward to this next stage of the Company." The NMS deal team also included Kevin Jordan, Jonathan Spero and Jordan Shenker. Greenberg Traurig provided legal advice and TripleTree acted as financial advisor to NMS. Cypress LLP provided legal advice to DirectMed, and Madison Capital Funding provided debt financing to support the transaction.
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