Lunit Completes Acquisition of Volpara... Resolves Legal Issues and Funding

Medical AI company Lunit has begun the finalization process for the acquisition of Volpara Health Technologies, which will serve as a foothold for its global expansion, including in the United States.

[Photo by Lunit]

On the 7th, Lunit announced that it successfully raised 166.5 billion KRW worth of convertible bonds (CB) for the acquisition of Volpara. Earlier, on the 3rd, the New Zealand High Court gave final approval for Lunit's acquisition of Volpara, and trading was suspended on the Australian stock market. Once the acquisition payment is transferred within this month, the acquisition of Volpara will be finalized.

In December last year, Lunit decided to acquire Volpara for a total of 292.53 million Australian dollars (approximately 263 billion KRW). As Volpara is a breast cancer screening-specialized AI company with over 2,000 medical institutions as customers in the United States, it is expected to greatly aid Lunit’s global expansion, including in the U.S. The company also explained, "This fundraising is significant as more than 30 institutional investors who share Lunit’s future vision, including new market development through overseas subsidiary acquisitions and significant sales growth, participated in large numbers." Aside from the funds secured through this CB issuance, the remaining balance will be covered by Lunit’s own cash reserves.

After the acquisition, Lunit plans to begin selling Lunit and Volpara products in global markets, including the U.S., as early as the end of this year following post-merger integration (PMI) work. Volpara’s performance will be included in Lunit’s consolidated financial statements starting next month. Volpara recorded sales of 39.41 million New Zealand dollars (approximately 3.21 billion KRW) last year. It is said to have shown a compound annual growth rate (CAGR) of over 50% in sales over the past five years.

Seob Beom-seok, CEO of Lunit, said, "With the approval of the New Zealand court and the completion of acquisition funding, all uncertainties related to the acquisition of Volpara have been resolved," adding, "Based on strong synergy with Volpara, we will further solidify our position in the global medical AI market."