CHICAGO - In a move bound to shake up the industry, two of the top three CAD developers have announced a merger. Nashua, NH-based iCAD will continue to trade on NASDAQ, while privately held CADx of Beavercreek, OH and its parent company, Qualia, will operate independently as a subsidiary of iCAD, at least until the new company decides exactly how it wants to integrate its operations.-->
iCAD and CADx are two of the three biggest computer-assisted detection (CAD) companies, along with Sunnyvale, CA-based R2 Technology. Together, iCAD and CADx have more than 300 systems installed.
According to company officials, CADx’s 2003 and 2004 sales are projected to be greater than iCAD’s, with CADx expecting to turn a profit in the fourth quarter of 2003 and in 2004. iCAD has projected a profit for 2004.
According to Scott Parr, iCAD’s president and CEO, the two companies originally were talking about sharing technology, but they soon saw that a merger would be more practical.
“The whole thing only took six weeks,” Parr said. The merger itself is expected to be completed within two weeks.
Dr. Steven Rogers, CEO of CADx, said, “This is all about standard of care. We believe the combined company will be, financially, the strongest independent CAD company.”
Rogers will become chief scientific officer of iCAD, and will be elected to the company’s board of directors. Parr will remain president and CEO. Jim Corbett, CADx’s executive vice president, will become president of CADx and COO of iCAD.
CADx has 71 employees and iCAD 46 employees. The companies plan to maintain both offices. Parr said there is minimal duplication in the two companies’ products. The new company will have OEM relationships with GE Medical Systems, Hitachi Medical Systems America, and Fischer Imaging.
By
Robert
Bruce
AuntMinnie.com contributing writer
December 1, 2003
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