Imaging services provider RadNet has signed a definitive agreement to acquire artificial intelligence (AI) software firm DeepHealth.
DeepHealth, based in Cambridge, MA, provides AI and machine-learning software for mammography screening and the interpretation of mammograms, specifically for 3D breast imaging.
The agreement calls for RadNet to purchase DeepHealth with approximately 1 million shares of RadNet common stock at the closing of the deal, which is scheduled for April 1. RadNet stock was trading at approximately $17.65 per share on March 11, which would value the transaction at approximately $17.6 million.
Additional payments to DeepHealth shareholders up to approximately 1.5 million shares will be contingent upon several milestones, including U.S. Federal Drug Administration clearance for certain mammography and prostate MRI algorithms and for demonstrating certain features, functionality, and radiologist productivity.
Once the acquisition is complete, Dr. Gregory Sorensen, co-founder and president of DeepHealth, will join RadNet to lead all of the new entity's AI efforts, including projects currently being developed by RadNet's previous acquisition of Nulogix. Sorensen's responsibilities, in addition to the management of DeepHealth's staff and initiatives, will include directing RadNet's AI strategy, acquisitions, partnerships, licensing, and product development.
