NETHERLANDS — Philips, the Dutch healthcare vendor, is set to acquire DiA Imaging Analysis, an Israeli-based developer of AI-powered technology for cardiac ultrasound imaging analysis.
The deal, valued at nearly US$100 million, will enhance Philips’ focus on improving cardiac ultrasound imaging capabilities, particularly for ultrasounds performed using mobile devices.
DiA Imaging Analysis, with its headquarters in Israel, specializes in AI-based examination of ultrasound images.
The company recently obtained its ninth clearance from the U.S. Food and Drug Administration (FDA) in February for a solution that assists with cardiac image acquisition.
Over the years, DiA has secured approximately US$26.6 million in funding and established partnerships with several manufacturers and health systems.
The foundation of DiA dates back to 2009 when CEO Dr. Hila Goldman-Aslan and CTO Dr. Michal Yaacobi founded the company in the Ofakim technological incubator.
Based on research conducted at Ben Gurion University of the Negev, DiA was established with the support of BG Negev, the university’s technology transfer company.
The largest shareholder in DiA is Capital Point, having invested US$25 million to date. Capital Point expects to generate US$7 million in revenue from the acquisition, with US$5.6 million immediately available and the remainder held by a trustee for 18 months.
An additional US$1.5 million may be earned if the company achieves its milestones. Furthermore, the Israel Innovation Authority will receive a US$18 million royalty payment, three times its initial investment.
Other investors who will profit from the acquisition include Alchimia Ventures, ICON, Mindset Ventures, Defta Partners, Connecticut Innovations, Downing Ventures, XTX Ventures, CE Ventures, and Dr. Shmuel Cabilly.
In March 2021, Philips and DiA announced a strategic partnership to deliver automated solutions to clinicians at the point-of-care by combining Philips’ ultrasound image quality with DiA’s AI library of automated solutions.
This collaboration aimed to enhance diagnostic confidence, operational efficiency, and access to care for point-of-care customers both inside and outside the hospital.
Later in the year, Philips participated in DiA’s funding round, acquiring a five percent stake in the Israeli start-up as part of the investment.
This acquisition by Philips further strengthens its partnership with DiA and enables the company to leverage DiA’s nine FDA-approved solutions.
While the acquiring company was not initially named, sources have confirmed that Philips is buying DiA for just under US$100 million.
DiA’s flagship solution, LVivo IQS, obtained FDA clearance in February. This AI-based vendor-neutral software enables healthcare professionals to capture high-quality and interpretable cardiac ultrasound images, facilitating better clinical assessments of the heart.
Hila Goldman-Aslan, CEO and founder of DiA Imaging Analysis, expressed excitement about the capabilities of LVivo IQS and the broader suite of software solutions developed by the company.
DiA’s solutions address challenges in ultrasound imaging, such as acquiring high-quality images and accurately analyzing them using AI.
Philips’ ultrasound devices, known for their superior image quality and compatibility with smartphones and tablets, are highly regarded in the industry.
The company’s commitment to deploying AI-enabled solutions aligns with its reputation as an advanced provider of point-of-care imaging solutions.
Philips’ ultrasound portfolio encompasses diagnosis, treatment planning and guidance, software applications, and remote capabilities for tele-ultrasound operation and training.
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