Three-dimensional-software developer Vital Images has signed an agreement to acquire HInnovation, a private Milwaukee-based provider of software that allows physicians to use PCs or notebook computers to access 2-D, 3-D, and 4-D medical imaging applications over the Internet.
The deal includes a $12 million initial payment to HInnovation, consisting of $6 million in stock and $6 million in cash, followed by $6 million in contingent milestone payments comprised of $3 million in stock and $3 million in cash. The contingent payments are tied to achievements in revenue generation, product development and intellectual property. Vital Images will launch and sell HInnovation products once the deal closes and the HInnovation products have been assimilated into the Vitrea product line, Vital Images said.
In other news, Plymouth, MN-based Vital Images revised its guidance for the year ended December 31, 2003 due to lower-than-expected sales in the fourth quarter. Management expects fourth-quarter revenue of $5.1 million to $5.4 million and earnings ranging from net income of $150,000 to a net loss of $400,000. With these results, full-year revenue for 2003 will be approximately $26.7 million to $27 million with earnings of $7.7 million to $8.3 million, according to the company.
Vital Images plans to announce final fourth-quarter and full-year 2003 results, and guidance for 2004, during the week of February 9.
By AuntMinnie.com staff writersJanuary 9, 2004
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