GE HealthCare announced Thursday it had signed an agreement to acquire Caption Health, maker of AI-enabled ultrasound guidance software.
The deal marks the newly independent company’s second acquisition announcement since it completed its spin-off a month ago. Shortly after the newly spun-off GE HealthCare debuted on Nasdaq, the company revealed it had entered into an agreement to buy French company IMACTIS, developer of computed tomography (CT) interventional guidance technology.
GE HealthCare is pitching the latest planned acquisition as a way to expand access to ultrasounds that could catch early signs of diseases like heart failure, and believes more healthcare professionals could use the tool in different care settings.
The company plans to fund the acquisition with cash on hand, and to continue to operate Caption Care, the service offering that trains technicians with Caption technology to provide echocardiograms on at-risk patients.
“Guiding ultrasound users during examinations with the help of AI is of growing importance, especially as we reach a broader set of healthcare professionals. Caption Health’s AI applications help enable reliable, consistent ultrasound examinations to deliver more precise diagnoses, improved treatment decision-making and ultimately improved patient outcomes,” Roland Rott, president and CEO of ultrasound at GE HealthCare, said in a statement.
“This tuck-in acquisition will help expand affordable access to ultrasound imaging to novice users and is aligned with a broader shift to precision care globally.”
THE LARGER TREND
Founded in 2013, Caption Health raised $53 million in Series B funding in 2020. Its guidance tool received FDA De Novo clearance earlier that year.
At the J.P. Morgan Healthcare Conference in January, GE HealthCare CEO Peter Arduini said embedding AI into its products would become much more common in the next few years. He also noted mergers and acquisitions will play “an important part for us over time.”
During an earnings call, he added the newly independent company was looking for M&A opportunities where it could acquire technology in fast-growing areas that could expand the breadth of capabilities.