ATI Medical, a Glendale provider of medical equipment to hospitals and the entertainment industry, said it scrapped plans to acquire SMI, a privately held company that rents out specialty hospital beds.
However, ATI said it was negotiating a revised agreement that would allow ATI to buy beds from SMI and directly rent them through its existing offices, except in Florida, Illinois, Wisconsin, South Carolina, Ohio, Kentucky and Michigan. In those states, the companies would jointly market the beds.
ATI didn't give a reason why the acquisition fell through, except to say that both companies agreed to drop the deal, which called for AMI to buy the company in exchange for 1.35 million of its common shares.
However, when the deal was announced in July, the value of the ATI stock to be exchanged was $8.9 million. The stock's price has since dropped and now the value of the shares is $6 million.