Lunit acquires NZ-based AI diagnostics firm Volpara

South Korean medical AI company Lunit announced on Thursday that it will acquire New Zealand-based AI breast cancer diagnostics solutions company Volpara Health Technologies for $193.07 million.

Under the deal, Volpara is valued at AUD 1.15 per share. This is a 47.4% increase from its previous closing price on the Australian Securities Exchange.

Lunit aims to finance this acquisition through external borrowings and expects the merger process to be complete within the next 3-6 months.

Volpara was Established in 2009 in Wellington. It has specialized in breast cancer diagnostic AI platforms. Its products are used in more than 2,000 medical institutions, accounting for a third of the breast imaging screening facilities in the US. As of last year, Volpara held a 42% market share in the US.

Volpara has about 100 million breast images in the US and other Western countries to develop precise AI models specialized for breast cancer screening.

After the acquisition of Volpara, Lunit plans to continue to acquire an additional 20 million images or more per year.

"This is the fastest and most effective way for Lunit to penetrate the US market," CEO of Lunit Suh Beom-Seok said. "It's the opportunity for us to expedite the development of advanced solutions for early cancer detection."

Write to Hyun-Ah Oh at 5hyun@hankyung.com