GE Healthcare has signed an agreement to acquire the clinical AI business from Intelligent Ultrasound for $51 million, the companies announced Thursday.
Cardiff, Wales-based Intelligent Ultrasound specializes in integrated, AI-driven tools that make scanning “smarter and more efficient,” and Chicago-based GE said it plans to integrate the company's solutions into its U.S. lines of business to improve ease of use.
“We are pleased to bring Intelligent Ultrasound's innovative technologies to GE Healthcare's ultrasound portfolio and fully integrate these solutions into our systems to help clinicians improve workflow, reduce repetitive tasks and simplify exams.” Said Phil Rackliffe, president and CEO of GE Healthcare's ultrasound and image-guided therapy division;
Products being transferred in the transaction include ScanNav Anatomy, a real-time highlight for anesthesiologists performing peripheral nerve blocks, and ScanNav Assist, the latter of which is an AI-based real-time image analysis software that supports sonographers during obstetric and gynecological ultrasound examinations. GE plans to integrate these tools into its Voluson SWIFT ultrasound machines.
GE Healthcare also touted the addition of new AI innovation pipelines, welcoming a team of research and development experts from Intelligent Ultrasound, which sees great potential in reducing the burden on ultrasound technicians: Around 81% of hospitals report a shortage of radiologists, and 90% of surveyed ultrasound technicians suffer from musculoskeletal disorders due to workload and repetitive motions.
“We believe we are at the beginning of a wave of AI that will revolutionize medical imaging, and diagnostic ultrasound in particular,” said Nick Sleep, chief operating officer at Intelligent Ultrasound. “Becoming part of the GE Healthcare group will accelerate the adoption of this technology and make diagnostic ultrasound even more accessible for our customers.”
GE hopes to close the transaction in the fourth quarter, subject to shareholder approval and other conditions. It plans to fund the transaction with cash on hand. More details about the merger can be read in a separate announcement. Intelligent Ultrasound.
Hologic will generate $800 million in free cash flow
Moody's Ratings on Wednesday affirmed its outlook for breast imaging vendor Hologic, highlighting the company's strong liquidity, scale and “leading” market position.
The Marlborough, Massachusetts-based ultrasound equipment maker expects to generate roughly $800 million in free cash flow for the year “driven by strong sales and earnings growth.” Hologic had about $2.2 billion in cash as of March 31, plus another $2 billion in unused revolving loans.
The company's debt-to-revenue ratio was about 2.1 times at the end of the second quarter, and it said its “revenues are strong and diversified across products and customers.”
“The stable rating outlook reflects our view that Hologic will sustain moderate single-digit organic growth over the long term and continue to add scale by pursuing both tuck-ins and potentially larger acquisitions,” Moody's said in a July 17 report. announcementHologic's Ba1 corporate family credit rating was affirmed.
Revenue is expected to continue to grow due to “strong market positions” in its core franchises, including digital mammography, cervical cancer screening and molecular diagnostics.
