Computer-aided detection (CAD) and radiation therapy firm iCAD has acquired brachytherapy services and technology developer DermEbx and oncology software firm Radion for a total of approximately $12.6 million.
iCAD and DermEbx had been in a strategic alliance since 2013, with DermEbx offering Xoft to treat nonmelanoma skin cancer through its customer base of dermatology centers. The acquisition expands Xoft offerings to include physics support, billing support, assistance with radiation oncology provider selection, and the Radion Hub cloud-based oncology collaboration software.
iCAD believes the deal, which closed July 15, will expand its Xoft electronic brachytherapy system and help dermatologists and radiation oncologists develop, launch, and expand their electronic brachytherapy programs for treating nonmelanoma skin cancer, according to the vendor.
Currently servicing 23 locations, DermEbx and Radion have a combined current annual recurring revenue run-rate of $12 million to $14 million, with earnings before interest, taxes, depreciation, and amortization (EBITDA) margins greater than 25%, iCAD said. iCAD paid $3.8 million in cash as well as 1.2 million shares of its common stock for the companies, and the deal is expected to be immediately accretive to revenues and operating cash flow.
