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GE Makes a Move in Ultrasound

Can anyone challenge Hewlett-Packard's lead in the ultrasound market? GE is trying, supplementing its own effort with this deal which essentially brings it the old Diasonics business, once one of the leaders in ultrasound. The Diasonics technology, purchased from Elbit, should get a boost from GE's strong reputation among customers, while GE will benefit from a strong, dedicated selling presence.

Can anyone challenge Hewlett-Packard Co. in ultrasound? Elbit Ltd.'s sale of Diasonics Vingmed Ultrasound Ltd. , which it bought from Diasonics a couple of years ago, to General Electric Co. 's GE Medical Systems division suggests you can, but the game is not for the faint of heart [See Deal].

Diasonics' own efforts to build a multi-modality imaging business in the mid 1980s to challenge the likes of GE crashed...

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