Philips Healthcare Imaging is acquiring Israeli company DiA Imaging Analysis (formerly DiA Cardio). The company has developed AI-software powered technology for improving heart ultrasound imaging analysis and specifically those ultrasounds implemented by mobile devices.
DiA’s biggest shareholder Capital Point (TASE: CPTP) has notified the Tel Aviv Stock Exchange (TASE) that the company has been sold to a major strategic company, although the company was not named, sources have informed “Globes” that it is Philips.
DiA has nine FDA approvals, the most recent of which was received in February 2023, for software that guides examinations in the field, by non-experts, including assistance on where to place the ultrasound transducer to perform the best test – and this approval was probably a significant part of Philips’ decision to conclude the deal.
DiA has annual revenue of several million dollars. Philips is paying slightly under $100 million for DiA, with most of the amount paid immediately and the rest according to various milestones.
DiA was founded in the Ofakim technological incubator in 2009 by CEO Dr. Hila Goldman-Aslan and CTO Dr. Michal Yaacobi based on research at Ben Gurion University of the Negev and set up by BG Negev, the university’s tech transfer company.
The company has raised $25 million to date with Capital Point, the Ofakim incubator franchisee, the biggest shareholder. Capital Point reports it will record revenue of $7 million ($5.6 million immediately and the remainder held by a trustee for 18 months), and $1.5 million more if the company meets its milestones.
Capital Point has a 15% stake in DiA. The Israel Innovation Authority will receive a royalty payment of $18 million, three times its investment. Other investors recording a profit include Alchimia Ventures, ICON, Mindset Ventures, Defta Partners, Connecticut Innovations, Downing Ventures, XTX Ventures, CE Venturesd and Dr. Shmuel Cabilly.
Goldman-Aslan said, “Philips joined as an investor in our most recent financing round and we have been in close contact with them for two years. They contacted us several months ago with an acquisition offer. The company was not looking to be acquired, we had financing but we know that this is a good match.”
She added, “We are a company with 40 employees that was founded in the south and today we have offices in Ramat Gan and Beersheva. We were a little ahead of our time, because when we entered the market, the generation of doctors we met were still used to doing everything on their own, which was frustrating. Over the last decade, everything has changed. The leading doctors today are our age, and grew up with technology and automation, and only ask if it is possible to have more. “Our breakthrough became possible when the field of mobile ultrasound began to develop, mainly around heart disease, and when Covid pushed forward the field of mobile and remote testing even more. We were already ready with a product approved for marketing. We signed marketing agreements with about 10 different international companies that combine our products with theirs.”
Published by Globes, Israel business news – en.globes.co.il – on May 7, 2023.
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