Lunit Acquires Volpara to Fuel AI-Powered Cancer Diagnostics Innovation
Lunit, a leading AI-powered cancer diagnostics and therapeutics company, today announced its proposed acquisition of Volpara Health Technologies Ltd., a global leader in AI-enabled early cancer detection and prevention software. The move marks a strategic step forward in Lunit’s quest for global cancer diagnostic advancements.
Lunit and Volpara have entered into a Scheme Implementation Agreement, outlining Lunit’s acquisition of all Volpara shares at AUD 1.15 per share through a New Zealand scheme of arrangement (Scheme). This compelling offer represents a 47.4% premium to Volpara’s closing share price on December 13th.
“Lunit’s acquisition of Volpara signifies a crucial moment in our commitment to revolutionizing global cancer diagnostics,” said Brandon Suh, CEO of Lunit. “Volpara’s extensive US presence and market-leading AI-powered mammography solutions would catapult Lunit to the forefront of the American market. Their deep knowledge and robust data of over 100 million mammogram images would supercharge Lunit’s AI capabilities, paving the way for groundbreaking solutions in medical imaging. This alliance positions us to lead innovation in cancer diagnostics and therapeutics, benefitting healthcare professionals and patients alike.”
The Scheme is contingent upon approval by Volpara shareholders, the New Zealand High Court, regulatory clearances, and fulfilling other customary conditions. Shareholders are expected to vote on the Scheme in early Q2 2024, with finalization targeted for Q2 end, subject to successful completion of all steps.
Key Highlights of the Acquisition:
- Compelling Offer: Lunit offers AUD 1.15 per share, a 47.4% premium to Volpara’s closing price. The deal totals AUD 292 million (USD 193 million) for 254 million Volpara shares.
- Scheme Implementation Agreement: The Agreement includes customary exclusivity provisions with exclusions allowing Volpara to consider superior proposals under specific conditions.
“Volpara’s Board believes this Scheme provides compelling value and certainty for our shareholders,” said Paul Reid, Volpara Chairman. “Lunit’s proposal recognizes the high quality of our products, our significant US market presence, and the dedication of our employees. This combined entity has the potential to develop groundbreaking products and become a global leader in cancer technology.”
“Together, Lunit and Volpara can create a powerful engine to improve global cancer diagnosis and care,” added Brandon Suh. “Volpara’s US presence and Lunit’s global footprint and AI expertise will create a comprehensive portfolio of advanced AI solutions for radiology and beyond. We respect Volpara’s achievements and culture, and believe that together, we can accelerate the entry of life-saving AI-powered products to conquer cancer.”
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