Lunit’s acquisition of Volpara at AUD 1.15 per share marks a pivotal move in cancer diagnostics. The Scheme Implementation Agreement targets Volpara’s AI-enabled solutions, expanding Lunit’s global presence. Volpara’s 100 million mammogram images promise revolutionary advancements in medical imaging. The acquisition hinges on shareholder approval, court sanction, and regulatory clearances, envisaging finalization by Q2 2024. This partnership aims to lead innovation, benefiting healthcare and patients worldwide.
Lunit’s recent proposal to acquire Volpara Health Technologies signals a transformative stride in cancer diagnostics. This strategic move positions Lunit to harness Volpara’s AI prowess in early cancer detection and prevention. The acquisition at AUD 1.15 per share targets Volpara’s expansive market presence across 2,000 U.S. medical sites and its repository of over 100 million high-quality mammogram images. The Scheme Implementation Agreement sets the stage for an innovative alliance, subject to shareholder assent, legal approvals, and regulatory clearances.
In a significant strategic move towards enhancing global cancer diagnostics and therapeutics, Lunit, a prominent provider of AI-powered solutions for cancer detection and treatment, has declared its intent to acquire Volpara Health Technologies Ltd. This strategic acquisition aims to fortify Lunit’s position in the realm of AI-enabled software for early cancer detection and prevention. The acquisition proposal stems from Lunit’s exhaustive exploration of avenues for sustained growth and innovation within the industry.
Under the Scheme Implementation Agreement inked between Lunit and Volpara, Lunit will procure all outstanding shares of Volpara at a rate of AUD 1.15 per share through a New Zealand scheme of arrangement. Brandon Suh, CEO of Lunit, expressed enthusiasm about this acquisition, citing Volpara’s AI-driven mammography solutions operational across more than 2,000 medical sites in the U.S. as a significant boon for Lunit’s foothold in the American market. He highlighted the wealth of knowledge embedded in Volpara’s developmental process, particularly emphasizing their repository of over 100 million high-quality mammogram images. Suh envisioned this collaboration propelling Lunit’s AI capabilities to groundbreaking levels in medical imaging, leading to innovative solutions that would benefit both healthcare professionals and patients.
However, the successful execution of this acquisition hinges upon several factors, including approval from Volpara shareholders, endorsement from 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. Anticipated shareholder voting is slated for the early second quarter of 2024, with the acquisition likely to conclude by the end of the same quarter.
Key Highlights of the Acquisition:
The proposed cash offer of AUD 1.15 per share represents an attractive 47.4% premium to Volpara’s recent closing share price of AUD 0.78 per share on December 13th. This valuation translates to Lunit acquiring a total of 254 million shares, culminating in a deal valued at approximately AUD 292 million (USD 193 million).
The Scheme Implementation Agreement encompasses standard exclusivity provisions. These clauses allow the Volpara Board to consider competing proposals that could potentially be superior and necessitate a response to fulfill statutory or fiduciary obligations. However, Lunit must be notified of any such proposal, providing them an opportunity to match or surpass it.
Volpara’s Chairman, Paul Reid, expressed the Board’s unanimous support for the acquisition, highlighting the compelling value and certainty it offers to shareholders. The move is seen as a means to expedite a return of capital to shareholders while mitigating risks involved in executing Volpara’s long-term strategic plan.
Teri Thomas, CEO and Managing Director of Volpara, emphasized the acquisition as a testament to the quality of Volpara’s products, US market presence, and the company’s workforce. She envisaged the combined strengths of Lunit and Volpara creating unparalleled products, positioning the amalgamated entity as a trailblazer in cancer technology on a global scale.
Brandon Suh reiterated the shared vision between Lunit and Volpara, emphasizing the potential synergy in leveraging AI-driven software to revolutionize cancer diagnosis and care worldwide. He acknowledged Volpara’s achievements and corporate culture, envisioning the joint effort expediting the market entry of life-saving products and benefiting medical practices globally.
The transaction advisory teams include D23 Capital and Advisory Pty Ltd, MinterEllisonRuddWatts, MinterEllison (Syd) for Volpara, and Evercore, Luminis Partners, Baker Mackenzie, and Harmos Horton Lusk for Lunit.
Lunit’s acquisition of Volpara stands as a significant milestone in redefining cancer diagnostics and therapeutics globally. The envisioned collaboration promises groundbreaking advancements in medical imaging, leveraging Volpara’s extensive database of mammogram images. This strategic union underscores a shared commitment to advancing healthcare, benefitting both professionals and patients. With its completion targeted by Q2 2024, this alliance is poised to accelerate innovation, setting the stage for a pioneering portfolio of AI-enabled solutions that strive to revolutionize cancer care worldwide.
