Imaging provider RadNet aims to acquire iCad and its artificial-intelligence-powered mammography software—with plans to fold them into its DeepHealth subsidiary, along with their commercial and engineering teams.
The all-stock transaction is valued at about $103 million, or a 98% premium over iCad’s recent share price. The deal is slated to close in the third quarter of this year.
“iCad’s ProFound Breast Health Suite and RadNet’s DeepHealth AI-powered breast screening solutions, together, have the power to materially expand and improve patient diagnosis and outcomes on a global basis through further enabling accuracy and early detection,” RadNet President and CEO Howard Berger, M.D., said in a statement.
“With over 1,500 healthcare provider locations, facilitating over 8 million annual mammograms in 50 countries, iCad’s installed base and strong sales, engineering and marketing capabilities will provide us with immediate broad and valuable customer relationships and commercialization capabilities that can accelerate our existing DeepHealth objectives,” Berger added.
RadNet, meanwhile, maintains a network of about 400 owned-and-operated outpatient imaging centers across several U.S. states. In addition to AI software, its DeepHealth brand also provides teleradiology services.
“With current and future products in breast cancer detection, risk evaluation, density assessment and breast arterial calcification, we believe RadNet’s scale, access to data and clinical leadership will ensure our current and future products are brought to market, improving radiologist and patient workflow and clinical outcomes,” said iCad President and CEO Dana Brown.
Last year, GE HealthCare signed up to help develop RadNet and DeepHealth’s cloud-based mammography PACS software, SmartMammo, which aims to flag scans based on breast cancer risk. That partnership includes a route for future FDA-cleared programs from DeepHealth to make their way onto GE HealthCare’s portfolio of scanners.
Prior to that, DeepHealth acquired Kheiron Medical Technologies, a U.K.-based mammography AI developer, for $2.3 million.