After a 10-month strategic review, Analogic Corp. [ALOG] on Tuesday said it will be acquired by the private equity firm Altaris Capital Partners for $1.1 billion in cash.

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Analogic’s computed tomography-based ConneCT checkpoint scanner. Photo: Analogic

Analogic, which provides products in the medical imaging and security detection space, said the agreement maximizes its value for shareholders, pointing out that the $84 per share purchase prices is a 25 percent premium to the $67.45 closing price of the company’s stock last June 7, the day after it announced it was undertaking a review of its strategic alternatives.

“Given the increasingly competitive markets that we serve, we have been focused on the need to achieve greater scale in order to generate sustained profitable growth,” Bernard Bailey, chairman of Analogic’s board, said in a statement.

Analogic said it had contacted 75 parties, domestically and internationally, as part of its strategic review.

Altaris has plenty of experience in the medical field having made 34 investments in the last 15 years with Analogic set to become the 17th company in its portfolio dealing with the design and manufacture of medical products regulated by the Food and Drug Administration. While Altaris’ portfolio is all about the healthcare space, it has nothing to do with security detection, suggesting that it may eventually seek to divest that portion of the business.

In the security space, Analogic’s key products are used by airports worldwide for automatically detecting explosives in checked bags. The company has also developed a checkpoint version of this technology that is being used to screen carry-on bags for explosives and other potential threats.

The transaction is expected to close in the middle of 2018 and is subject to approvals by regulators and Analogic’s shareholders. The company’s board has already agreed to the deal.

Analogic’s financial adviser on the transaction is Citigroup [C].