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Dive Brief:
- GE Healthcare has agreed to buy Intelligent Ultrasound Group’s clinical artificial intelligence software business for approximately $51 million, the companies said Thursday.
- The takeover will give GE control of AI-driven image analysis tools that it will incorporate into its ultrasound portfolio. GE said the tools could improve workflows and ease of use.
- Intelligent Ultrasound agreed to sell the assets because clinical AI sales growth has been slower than expected and insufficient to fund developments to increase the value of the business.
Dive Insight:
GE already has one piece of Intelligent Ultrasound software integrated into its portfolio. Scannav Assist AI powers GE’s SonoLyst AI software on its Voluson range of ultrasound machines. The software, which supports obstetric ultrasound, was exclusive to GE before the company moved to buy the clinical AI business. GE launched an ultrasound system that incorporated Intelligent Ultrasound’s software in 2020.
Intelligent Ultrasound sold the clinical version of its Scannav Anatomy Peripheral Nerve Block software to other customers. The company identified clinical AI software as its main market for future growth and began developing products such as Scannav FetalCheck for gestational age estimation and Scannav Liver.
However, Riccardo Pigliucci, chairman of Intelligent Ultrasound, said in a statement that sales growth was slower than expected, and development of additional products “would require the sort of funding levels that are outside the Group’s current cash resources or capital raise capabilities.”
The company reported 2 million pounds of clinical AI sales in 2023, a 203% increase over the prior year.
Intelligent Ultrasound tried to reach commercial terms with GE for all the future products on its women’s health roadmap. The failure to reach an agreement led the company to conclude that it would need to develop products outside its existing relationship with GE. With financing conditions “uncertain,” the company decided to sell the business rather than try to develop the products independent of GE.
GE said the acquisition “adds an AI innovation pipeline that serves to help advance future development.” R&D experts from Intelligent Ultrasound will join GE as part of the deal. GE previously added to its AI capabilities by acquiring Caption Health in 2023.
Intelligent Ultrasound will stop selling Scannav Anatomy Peripheral Nerve Block but will continue to support existing customers. NeedleTrainer and NeedleTrainer Plus are unaffected by the GE acquisition.
GE plans to fund the transaction with cash on hand and expects the deal to close in the fourth quarter.
