Korean startup Lunit to acquire AI firm Volpara Health Technologies

Korean medical AI startup Lunit plans to acquire New Zealand-based AI company Volpara Health Technologies for $193 million.

Logos of Lunit and Volpara Health Technologies [LUNIT]

Korean medical AI startup Lunit will acquire a full stake in New Zealand-based AI company Volpara Health Technologies for $193 million, aiming to propel its expansion into the U.S. market.

Based in Wellington, Volpara Health Technologies specializes in developing AI diagnosis products for breast imaging and cancer screening. The company is listed on the Australian Stock Exchange (ASE), and 97 percent of its revenue derives from the U.S. market, which has more than 2,000 distribution channels with American medical facilities, Lunit said Thursday.

Volpara also covers 42 percent of all breast X-rays taken in the United States.

The deal will be finalized when 75 percent of the shareholders vote in favor of the acquisition during the general shareholders' meeting, which is scheduled to be held early in the second quarter of next year.

The deal should take three to six months to close, Lunit said.

Volpara will delist from the ASE after the deal closes in order to conserve resources and focus on business development.

With the acquisition, Lunit hopes to strengthen a U.S. base for the distribution of its cancer-detecting AI products.

“This is a historic moment for Lunit, marking the first time ever Lunit is joining forces with another company in our effort to grow further and make a significant leap forward to achieve our mission: conquer cancer through AI,” Lunit said in a statement to shareholders on its home page on Thursday.

Lunit CEO Suh Beom-seok said in a statement that the acquisition will “catapult Lunit to the forefront of the American market.”

“What sets Volpara apart is not just its market presence but the depth of knowledge embedded in its development process,” Suh said. “With a robust repository of over 100 million high-quality mammogram images, Volpara's contribution would supercharge Lunit's AI capabilities, paving the way for groundbreaking solutions in medical imaging. This alliance will position us to lead innovation in cancer diagnostics and therapeutics, benefiting health care professionals and patients alike.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]