Bio-Imaging Acquires Phoenix Data Systems

Bio-Imaging Technologies Inc., Newtown, announced today that it bought privately held Phoenix Data Systems Inc., King of Prussia, for $24 million in cash and stock.

Phoenix provides data services that help in the running of clinical studies.

Bio-Imaging, which provides product-development services to the pharmaceutical, biotechnology and medical-device industries, said the deal value consists of $7 million in cash and about 2.3 million shares of Bio-Imaging stock, valued at $17 million.

The company said the acquisition would add to its earnings in 2008, and raised its revenue expectation for the year to a range of $52 million to $55 million, up from $42 million to $44 million.

Phoenix Data Systems' 127 employees will join Bio-Imaging as a new division. Phoenix Data Systems will retain its name and continue to be managed by William Claypool, its current president.

Bio-Imaging shares rose 46 cents, or 6.8 percent, to $7.22 in noon trading on the Nasdaq.