USA — GE HealthCare has signed an agreement to acquire US-based medical technology manufacturer Caption Health, for an undisclosed sum.
The proposed acquisition comes less than a month after GE HealthCare’s first acquisition, which was announced just a few days after the spinoff was completed and will see the company acquire CT imaging technology maker Imactis.
Caption Health is a healthcare company developing clinical applications that support early disease detection using AI-powered ultrasound scans.
The company has a strong development pipeline of AI software, including advanced ultrasound technology for use in pulmonary applications.
Upon closing of the acquisition, Caption Health will continue to offer management and administrative services to affiliated medical services providers.
The company will be integrated into GE HealthCare’s wider digital ecosystem, and will be led by GE HealthCare Ultrasound chief digital officer Karley Yoder.
Caption Health has raised approximately US$60 million in venture funding since its inception a decade ago, including a US$53 million series B round in 2020, as well as grants from the National Science Foundation and the Bill & Melinda Gates Foundation.
GE HealthCare intends to fund the acquisition, which is subject to certain customary closing conditions, with available cash on hand.
Acquisition supports GE HealthCare’s US$3 billion Ultrasound business by adding AI-enabled image guidance to ultrasound device portfolios.
Besides aligning with GE HealthCare’s strategy to deliver precision care and expands access to new ultrasound users and clinical uses, the acquisition will enable affordable, convenient access to point-of-care ultrasound imaging for a variety of clinical uses.
GE HealthCare ultrasound president and CEO Roland Rott said: “Guiding ultrasound users during examinations with the help of AI is of growing importance, especially as we reach a broader set of healthcare professionals.”
According to GE, heart ultrasound examinations help identify heart failure, which is the most common diagnosis in the U.S. for hospitalized patients over the age of 65.
It contributes to millions of deaths globally every year, but early symptoms like fatigue or shortness of breath are commonly confused for normal signs of aging.
According to a study, 38% of new heart failure patients are diagnosed in acute care facilities, even though 46% of these patients had potential symptoms six months before diagnosis.
Caption Health’s AI applications are said to help healthcare professionals easily and rapidly conduct basic echocardiogram exams and ultrasound examinations.
The technology helps detect signs of diseases like heart failure in at-risk patients, to prevent potential hospitalization and support improved clinical outcomes.
Meanwhile, GE HealthCare recently released its first earnings report since going independent, citing solid growth in its ultrasound segment as a major driver of the company’s 4% increase in total annual earnings.
The ultrasound industry made more than US$3.4 billion in revenue in 2022, up about 8% from the previous year.
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