Healthcare IT and advanced visualization developer Merge Healthcare of Milwaukee announced today that it has reached an agreement to buy MRI computer-aided detection (CAD) software developer Confirma of Bellevue, WA, in a stock swap valued at $22 million.
Merge said it would offer 5.6 million shares of its stock at a price of $3.897 per share based on a 10-day volume-weighted average price. At the conclusion of the deal, it's estimated that Confirma investors will own 8.5% of Merge. The acquisition is expected to close in September.
Confirma's flagship CADstream product has applications in both breast and prostate MRI and is installed at more than 1,200 sites, according to the companies. Other applications for the software are under development.
Merge management said the acquisition should confer a number of benefits to the company. Short-term synergies will come from bringing Confirma products into Merge's international and OEM distribution channels, according to Justin Dearborn, Merge Healthcare CEO. In addition, Merge and Confirma breast imaging software can be combined to give them additional differentiation in the market.
In the medium term, Merge sees opportunities for CAD in clinical trials (the company recently purchased clinical trials software firm etrials), and in the long term the company would like to "expand the use of CAD in humanitarian markets and to bring additional efficiency to established markets where imaging costs are under fire," Dearborn said.
Related Reading
Merge opens up software for development, August 5, 2009
Merge inks Allscripts deal, August 3, 2009
Merge enjoys Q2 gains, July 30, 2009
Confirma completes Shields MRI order, July 28, 2009
Confirma starts online training, June 30, 2009
Confirma, Medrad ink deal, March 6, 2009
Copyright © 2009 AuntMinnie.com
