Lunit, a South Korean company that recently secured $150M, has announced its plan to acquire Volpara Health Technologies, an AI-enabled software company specializing in the early detection and prevention of cancer. The acquisition, which is expected to be completed by the second quarter of 2024, involves Lunit acquiring all Volpara shares at AUD 1.15 per share, amounting to a deal worth approximately AUD 292 million (USD 193 million).

“Lunit’s acquisition of Volpara signifies a pivotal moment in our commitment to advancing global cancer diagnostics. Volpara’s AI-powered mammography solutions, operational in over 2,000 U.S. medical sites, would catapult Lunit into the forefront of the American market,” said Brandon Suh, CEO of Lunit. “What sets Volpara apart is not just its market presence but the depth of knowledge embedded in its development process. With a robust repository of over 100 million high-quality mammogram images, Volpara’s contribution would supercharge Lunit’s AI capabilities, paving the way for groundbreaking solutions in medical imaging. This alliance would position us to lead innovation in cancer diagnostics and therapeutics, benefitting healthcare professionals and patients alike.”

The acquisition is contingent upon approval from Volpara shareholders, the New Zealand High Court, regulatory clearances from the New Zealand Overseas Investment Office, and fulfillment of other customary conditions outlined in the Scheme Implementation Agreement. Shareholders are expected to vote on the Scheme in early Q2 of 2024.

“Volpara’s Board has assessed the proposed Scheme as providing compelling, risk-adjusted value and certainty for shareholders and unanimously support the proposed transaction,” said Paul Reid, Volpara Chairman. “In considering options for Volpara, including continuing to implement the Company’s growth strategy as a publicly-listed company, the Board adopted a long-term view of the risks and rewards of various alternatives. While the Board remains confident in the future of Volpara, the transaction would accelerate a capital return to shareholders and mitigates the risks that would otherwise be involved in delivering the opportunities from executing Volpara’s strategic plan over time.”

“Lunit’s proposal to acquire Volpara is a testament to the high quality of our products, our significant US market presence and the hard work of our employees. By combining Lunit and Volpara, the Group would have the opportunity to develop products that no other company is in a position to do. This is expected to put the combined company at the forefront of cancer technology and position it as a global leader in our field,” said Teri Thomas, CEO and Managing Director of Volpara.

Lunit, founded in 2013, is known for developing AI solutions for precision diagnostics and treatment support in cancer care. Its flagship product, Lunit INSIGHT, is FDA-cleared and CE-marked, used in over 3,000 hospitals across 40+ countries. Volpara Health Technologies, on the other hand, focuses on AI-powered image analysis for breast cancer detection, streamlining operations in the face of industry staff shortages.

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