Nanox has signed an agreement to acquire medical artificial intelligence (AI) developer, Zebra Medical Vision (Zebra-Med), in a deal worth up to $200m.
Established in 2014, Zebra-Med has expertise in the AI medical imaging sector with a focus on radiology.
Currently, the company has seven US Food and Drug Administration (FDA)-approved and ten CE-marked AI solutions for medical imaging.
Zebra-Med’s recently launched 3D modelling solution for x-ray images is utilised for pre-operative planning of orthopaedic surgical procedures.
The company’s algorithms leverage patient imaging data available to the healthcare system to show initial signs of common chronic ailments not identified earlier.
These findings can then set off additional medical analysis to validate personalised preventative care pathways for patients.
As per the deal, Zebra-Med will receive an upfront payment of $100m and an additional payment of up to $100m on meeting certain milestones, all to be paid in Nanox stakes.
On concluding the acquisition, Nanox will use Zebra-Med’s team, innovative AI technology and Cloud expertise, as well as a unique regulatory framework, to create a med-tech company.
The transaction will also aid the companies in creating advanced AI-powered hardware and software devices.
Nanox chairman and CEO Ran Poliakine said: “Our plan is to double down on Zebra-Med’s AI and Cloud platform effort, strengthen the industry-leading team even further, and solidify Zebra-Med’s leadership position in the radiology space.
“This strategic move represents an end-to-end, globally-connected medical imaging solution.”
With the acquisition, Zebra-Med intends to extend its mission of diagnosing people at scale with its AI-based solutions.
This approach will allow Integrated Delivery Networks (IDNs) and commercial payers to identify and treat patients who are at risk of chronic conditions while precisely regulating their covered population risk.
Furthermore, AI solutions of Zebra-Med will be integrated with Nanox’s imaging equipment to provide easy and affordable access to medical imaging for diagnosis globally, offered through a scalable Cloud infrastructure.
In April, the FDA granted 510(k) clearance to Nanox’s single-source Nanox.ARC digital x-ray technology.
Nanox also signed a binding letter of intent to takeover teleradiology company USARAD and its affiliate, Medical Diagnostics Web, for a total consideration of $30m, which includes $21m in Nanox shares and $9m in cash.
With an international network of 300 radiologists, USARAD offers teleradiology services in all 50 US states.