RadNet has announced its intention to acquire iCAD and integrate the company into its DeepHealth portfolio of solutions.
iCAD currently provides its breast imaging artificial intelligence (AI) solutions to over 1,500 healthcare provider locations in 50 countries. The company's ProFound Breast Health Suite is used in screening and diagnostic mammography workflows worldwide.
This acquisition will enable DeepHealth, RadNet's wholly owned subsidiary, to combine its own SmartMammo AI-powered SaaS breast cancer diagnostic solution with iCAD's technology. "iCAD's ProFound Breast Health Suite and DeepHealth's SmartMammo AI-powered SaaS breast cancer diagnostic solution, together, have the power to expand and improve patient diagnosis and outcomes on a global basis. With this expanded capability, DeepHealth is expected to scale its impact to over 10 million mammograms annually," the announcement stated.
The companies expect that the integration of iCAD's portfolio will strengthen DeepHealth's ability to address patient care and operational efficiencies. The solution aims to tackle clinical and operational challenges that routinely arise in breast cancer screening, particularly in complex and high-volume healthcare settings.
RadNet highlighted that the strategic acquisition reinforces DeepHealth's mission "of empowering breakthroughs in care by harnessing the power of AI and imaging to tackle clinical and operational challenges that arise in complex, high-volume care settings like breast cancer screening."
As the transaction proceeds, RadNet indicated it would submit a registration statement on Form S-4 to the Securities and Exchange Commission (SEC), which will constitute a prospectus of RadNet and include a proxy statement of iCAD. Once effective, iCAD intends to send the proxy statement/prospectus to its shareholders for approval of the transaction and to provide material information about the merger process.
RadNet and iCAD cautioned in their statement that, "Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's current beliefs, expectations and assumptions regarding the future of RadNet's and iCAD's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions."
Potential risks outlined by the companies include the possible termination or inability to complete the merger, failure to secure stockholder or regulatory approval, and potential difficulties in integrating the organisations. The forward-looking statement further noted, "None of RadNet, iCAD or any of their respective directors, executive officers, or advisors, provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur, or if any of them do occur, what impact they will have on the business, results of operations or financial condition of RadNet or iCAD."
iCAD's existing relationships with healthcare providers across multiple countries are considered by RadNet to be valuable for extending the reach of AI-based breast cancer diagnostics. The combined scale is expected to boost annual mammogram numbers evaluated using DeepHealth solutions well beyond the 10 million mark.
The proposed transaction is subject to customary closing conditions, including regulatory and iCAD stockholder approvals. RadNet will make additional filings with the SEC as the transaction progresses, and both companies have stated that these documents will provide important information to investors regarding details of the proposed combination.
