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Interview with the Former CEO of Orex Computed Radiography: Branding and Kodak’s Acquisition
June, 2011
Rick Tracy, Creative Director of Cambridge Design Group (CDG) interviewed Hillel Bachrach, former CEO of Orex Computed Radiography Ltd., after being acquired by Kodak (the name was later changed to Carestream). Find out what went down behind the scenes and the role CDG played in the branding of Orex leading up to the subsequent acquisition by Kodak.
Orex was a leading provider of compact, high-quality desktop Computed Radiography (CR) systems for medical, dental and military solutions. The technology and innovation behind Orex’s hardware and software have resulted in one of the most versatile and flexible compact CR systems on the market.
RT: Was the acquisition of Orex by a larger company in your plans from the beginning?
HB: Yes. That’s what you do when you have a venture-funded company. You’re looking for either an IPO (Initial Public Offering) or an M&A (Merger and Acquisition).
RT: Was Kodak the company you thought would most likely acquire Orex?
HB: No, Kodak was not the company I initially had in mind as the primary investor. We went to a banker to find out who was potentially interested. We talked to GE, Siemens, Philips, AGFA, Kodak and others. We were looking for the best financial opportunity.
RT: Could you share with us your strategy to get Orex noticed in the medical digital imaging market?
HB: You have to show current sales, a growth curve and future growth of sales. As a young and foreign-based company you have to project credibility and presence so we put on the face of a big company. We did not want to seem like another no name company so we acted like we were big from the beginning.
That’s why we did so much advertising. Our goal was to make potential buyers understand that we were an established entity rather than just another technology start-up trying to sell a product. That was the entire strategy.
High concept print ads created by CDG evoked a visceral reaction from the viewer rather
than focusing on the technical specs of the product. The brand was carried through to the product collateral and exhibit graphics. (click on images to see the complete collection)
RT: Could you explain more about your choice to focus on print ads?
HB: It was a key strategic move to work on the brand and to not stagnate. We built a campaign and every few months came out with a different advertisement showing
people that there is really some thought behind our product and that it was more than
just skin deep.
RT: Could you give some background on how the relationship between Orex and Kodak developed and what was the tipping point?
HB: At one of the digital imaging trade shows in France, I met the top guy at Kodak and he said, “Wow, we see Orex everywhere.” I said, “That’s exactly what we’re trying to do”.
RT: Oh, he must have seen the ads CDG designed leading up to the show and when your brand was showcased there, it clicked. You never told me that story! That’s great.
HB: Kodak has the breadth of experience in our industry and the global resources to further enhance and better serve Orex’s customers. Kodak was interested and we started a conversation about an acquisition.
RT: What was the final acquisition price of Orex?
HB: Kodak acquired Orex for approximately $55 million in cash.
RT: How much of a role did Cambridge Design Group (CDG) play in raising Orex’s brand recognition leading up to the acquisition?
HB: I would say CDG was 50% responsible for the acquisition. You have to know up front that the product was good, maybe not great, but there was a market for it. The brand awareness created by CDG made our product look damn good in the eyes of the end-user customer as well as the potential buyers.
RT: What’s your opinion about the value of building a strong brand?
HB: Brand building is very important, but it’s not always an easy game to play. It takes dedication, time and money. It’s a challenge when management and marketing don’t agree on whether to forge ahead with the branding campaign or pull back. You and I, we knew how to play this game.
All of us at Orex saw tremendous opportunity ahead as a result of joining Kodak, which is one of the world’s truly great brands. If you know how to create a great brand it will be very rewarding, as it was with Orex.
Hillel Bachrach is currently Managing Partner of 20/20 HealthCare Partners. They provide equity financing for promising growth businesses as well as for buyouts or recapitalizations of companies in the Medical-Technology industry.
