In a move aimed at expanding its breast imaging AI capabilities, imaging services provider RadNet has inked a deal to purchase AI software developer iCAD in an all-stock transaction valued at approximately $103 million.
RadNet will integrate iCAD into its wholly owned AI subsidiary DeepHealth. ICAD’s ProFound HealthSuite offers AI-based breast cancer detection capability for both 2D and 3D mammography as well as breast density assessment. In addition, iCAD has created a breast cancer risk assessment tool, which has received the CE Mark and a license from Health Canada but has not yet secured U.S. Food and Drug Administration clearance. What’s more, iCAD is developing Heart Health, a software application that automatically identifies and measure the extent of breast arterial calcifications.
Meanwhile, DeepHealth’s AI portfolio features its SmartMammo software, which includes its SmartMammo Dx breast care detection algorithm. In announcing the deal, RadNet highlighted the complementary nature of their breast cancer detection and workflow offerings.
The acquisition would also bring an installed base of over 1,500 healthcare provider locations across over 50 countries, according to RadNet.
Under the terms of the deal, iCAD stockholders will receive 0.0677 shares of RadNet common stock for each share of iCAD common stock they hold when the merger is closed. That approximate value of $3.61 per share of iCAD common stock on a fully diluted basis represents roughly 98% premium to iCAD stockholders based on its closing stock price on April 14, according to the vendors.
The deal is subject to approval by iCAD stockholders and other customary closing conditions. It has been unanimously approved by each firm’s board of directors.
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