RadNet to Acquire iCad in $103M Deal, Bolstering AI-Powered Mammography Capabilities

RadNet, a leading outpatient imaging provider, has announced plans to acquire iCad, a developer of artificial intelligence-powered mammography software, in an all-stock transaction valued at approximately $103 million. The deal, which represents a 98% premium over iCad's recent share price, is expected to close in the third quarter of this year.

Merger to Enhance Breast Cancer Detection and Diagnosis

The acquisition aims to integrate iCad's ProFound Breast Health Suite with RadNet's DeepHealth AI-powered breast screening solutions. This combination is expected to significantly improve patient diagnosis and outcomes on a global scale by enhancing accuracy and early detection capabilities.

Howard Berger, M.D., President and CEO of RadNet, emphasized the potential impact of the merger, stating, "iCad's ProFound Breast Health Suite and RadNet's DeepHealth AI-powered breast screening solutions, together, have the power to materially expand and improve patient diagnosis and outcomes on a global basis through further enabling accuracy and early detection."

Expanding Market Reach and Technological Capabilities

iCad's extensive installed base, which includes over 1,500 healthcare provider locations facilitating more than 8 million annual mammograms across 50 countries, is expected to provide RadNet with immediate access to broad customer relationships and valuable commercialization capabilities. This expansion aligns with RadNet's existing DeepHealth objectives and complements its network of approximately 400 owned-and-operated outpatient imaging centers across several U.S. states.

Dana Brown, President and CEO of iCad, highlighted the potential for future product development, stating, "With current and future products in breast cancer detection, risk evaluation, density assessment and breast arterial calcification, we believe RadNet's scale, access to data and clinical leadership will ensure our current and future products are brought to market, improving radiologist and patient workflow and clinical outcomes."

Strategic Partnerships and Previous Acquisitions

The acquisition of iCad follows RadNet's recent strategic moves in the AI-powered mammography space. Last year, RadNet partnered with GE HealthCare to develop SmartMammo, a cloud-based mammography PACS software designed to flag scans based on breast cancer risk. This collaboration includes provisions for future FDA-cleared programs from DeepHealth to be integrated into GE HealthCare's portfolio of scanners.

Additionally, RadNet's subsidiary DeepHealth previously acquired Kheiron Medical Technologies, a U.K.-based mammography AI developer, for $2.3 million, further solidifying its position in the AI-driven breast health market.