GE HealthCare to acquire AI business from ultrasound firm for $51M, plus more vendor news

GE HealthCare has reached a deal to acquire the clinical AI business from Intelligent Ultrasound for $51 million, the two announced Thursday.

Based in Cardiff, Wales, Intelligent Ultrasound specializes in integrated, AI-driven tools to make scans “smarter and more efficient.” Chicago-headquartered GE said it plans to integrate the company’s solutions into its own US business line, aiming to enhance ease-of-use.

“We are pleased to bring innovative technology from Intelligent Ultrasound into GE HealthCare’s ultrasound portfolio, allowing us to 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 Ultrasound and Image Guided Therapies at GE HealthCare.

Products changing hands in the deal include ScanNav Anatomy (real-time highlighting for anesthetists carrying out peripheral nerve blocks) and ScanNav Assist. The latter is an AI-based, real-time image analysis software to support sonographers during OB-GYN ultrasound exams. GE plans to integrate these tools into its Voluson SWIFT ultrasound machines.

It also touted the addition of a new AI innovation pipeline, with GE Healthcare welcoming a team of research and development experts from Intelligent Ultrasound. The company sees great potential to relieve burdens placed on sonographers. About 81% of hospitals report rad tech shortages and 90% of sonographers surveyed are grappling with musculoskeletal disorders due to workload and repetitive motions.

“I really believe that we are at the start of a wave of AI making a profound difference to medical imaging, and especially ultrasound,” said Nick Sleep, chief operating officer, Intelligent Ultrasound. “Becoming part of the GE HealthCare family will help speed the adoption of this technology and make ultrasound even easier for customers to use.”

GE hopes to close the transaction in the fourth quarter, pending meeting certain conditions such as shareholder approval. It plans to fund the deal with cash on hand. You can read more about the merger in a separate announcement from Intelligent Ultrasound.

Hologic generates $800M in free cash flow

Moody’s Ratings affirmed its outlook for breast imaging vendor Hologic on Wednesday while highlighting its strong liquidity, scale and “leading” market position.

The Marlborough, Massachusetts-based ultrasound-maker is expected to generate free cash flow of roughly $800 million annually, “driven by strong revenue and earnings growth.” Hologic had about $2.2 billion in cash as of March 31 and another $2 billion from its undrawn revolver.

Its debt-to-earnings ratio sat at roughly 2.1x at the end of Q2, with “good revenue and diversity by product and customer.”

“The stable rating outlook reflects our view that Hologic will continue to increase its scale by sustaining mid-single-digit organic growth in the long-term and pursue both tuck-in and potentially larger acquisitions,” Moody’s said in its July 17 announcement, affirming Hologic’s Ba1 corporate family credit rating.

Top-line revenue growth is expected to continue, driven by “strong market positions” in core franchises such as digital mammography, cervical screening and molecular diagnostics.