Merge beats Bio-Imaging offer for etrials

Healthcare IT and advanced visualization developer Merge Healthcare of Milwaukee has signed a deal to acquire clinical trials firm etrials Worldwide of Morrisville, NC, beating out a competing offer by Bio-Imaging Technologies (d/b/a BioClinica) of Newtown, PA.

Merge has offered 80¢ in cash and 0.3448 shares of Merge common stock for each share of etrials common stock, representing an aggregate value of $1.70 per share on the basis of Merge's current stock price. The acquisition is expected to be consummated through a tender offer for all shares of etrials stock, and the deal is expected to close in the third quarter of 2009.

Etrials previously had received an acquisition offer from Bio-Imaging Technologies, but the company said that the Merge offer was superior. In response, Bio-Imaging said that etrials is now obligated to pay Bio-Imaging a termination fee of $500,000 and reimburse Bio-Imaging for out-of-pocket expenses up to $250,000 by June 2.

Merge said that acquiring etrials will be a good match for the company's existing Merge OEM business, which already supplies imaging and data hosting products and services to pharmaceutical companies, contract research organizations, the U.S. National Institutes of Health (NIH), and veterinary hospitals.

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