Artificial intelligence (AI) provider Lunit has announced plans to acquire Volpara Health Technologies Ltd., a global provider of cancer detection AI software. The acquisition involves Lunit purchasing all Volpara shares at AUD 1.15 each through a New Zealand arrangement, known as the Scheme.

“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,” says Lunit CEO Brandon Suh. 

Suh adds, “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 Scheme is contingent upon Volpara shareholders’ and New Zealand High Court’s approval, 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 cast their votes at a Scheme meeting in the early second quarter of 2024. 

Morever, Lunit expects to finalize the AUD292 million acquisition of Volpara by Q2 2024, offering a 47.4% premium on Volpara’s shares. The Scheme Implementation Agreement allows Volpara to explore competing proposals, with Lunit having the opportunity to match any superior offer.

“Lunit and Volpara are unified in our belief in the power of AI-driven software and together, our two organizations have the potential to create a powerful engine to better diagnose and care for cancer worldwide. Combining Volpara’s established presence in the US with Lunit’s complementing global footprint and AI expertise will create a compelling portfolio of advanced AI-enabled solutions for radiology and for other healthcare specialties,” adds Suh.