Damon Group Inc., which recently changed its name from American Magnetics Corp., said it agreed to sell its electronic products business to the U.S. subsidiary of a European company, System 4 International B.V., for $12 million.
The sale completes the transformation of the Sherman Oaks company from an electronics concern making card readers, like those used to operate bank teller machines, to a medical testing lab business.
The transformation began last spring when American Magnetics acquired control of Massachusetts-based Damon Corp., a company that operates a string of labs that perform medical services like urine and blood tests, in a deal worth about $317 million.
Previously, American Magnetics' chief business was making the card readers. But after the acquisition of Damon, the company's sales came 80% from medical services, 19% from electronics and about 1% from commercial real estate.
The sale of the electronic card reader business completes Damon's strategic shift.