BOTHELL – Diagnostic Ultrasound Corp. has received a $34 million commitment from investors to fuel growth for the maker of hand-held ultrasound scanners.
Two equity firms, DW Healthcare Partners of Salt Lake City and New York-based Rho Private Equity, already have given about half of the announced investment to the Bothell company.
“Having the expertise and resources of our new investors will enable us to pursue a growth strategy that will serve to benefit our customers, shareholders and employees,” Gerald McMorrow, Diagnostic Ultrasound’s founder and CEO, said in a written statement. McMorrow is traveling overseas and was unavailable for further comment on the deal.
Not as well known as Bothell’s other ultrasound companies, Philips and SonoSite, Diagnostic Ultrasound has grown the past two decades by developing ultrasound devices designed specifically for the bladder.
Its flagship device, the BladderScan, allows health care workers to easily measure how full a patient’s bladder is, and then use catheters only when needed. The device uses patented, 3-D imaging technology to make measurements as accurate as possible.
Its use has helped improve patients’ comfort and saved hospitals money by avoiding infections from unnecessary catheters, according to studies cited by the company.
In addition to making several models of the BladderScan, Diagnostic Ultrasound offers related software and imaging services. A new product the company is introducing can measure the thickness of the bladder wall.
Since McMorrow started the company in the basement of his Kirkland home, Diagnostic Ultrasound has become an international corporation with a growth rate approaching 30 percent a year.
It is still privately held, with McMorrow owning about half before this infusion of cash, which will give DW Healthcare and Rho a minority ownership position. Other employees and investors make up the remaining ownership.
Andrew Carragher, managing director at DW Healthcare Partners, said Diagnostic Ultrasound’s management team had a “very impressive track record.”
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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