Enterprise imaging vendor Enlitic inks data migration deal worth up to $32M
Radiology vendor Enlitic Inc. has inked a data migration deal with GE HealthCare worth up to $32 million (USD), the two announced May 5.
Under terms of the agreement, Fort Collins, Colorado-based Enlitic will provide between $3 million to $6 million in annual migration capacity to GEHC over the next five years.
GE HealthCare will issue an upfront payment of $2 million as part of the “memorandum of understanding,” with Enlitic now serving as a “foundational collaborator” on GEHC’s Genesis Cloud Product Suite.
“We look forward to deepening our collaboration with GE HealthCare to support healthcare providers with a more efficient, intelligent transition to cloud infrastructure," Michael Sistenich, CEO of Enlitic, said in a statement Monday.
The arrangement is conditional on Enlitic securing a minimum of $6.4 million in new funding from external sources. Sistenich and colleagues said the company has received “firm commitments” from investors who can produce these funds. Enlitic plans to conduct the capital raise via a “two-tranche placement”—a method of raising capital where issuance of new shares is split into two distinct parts.
Those involved said the memorandum of understanding will remain in effect until Dec. 31, at which time they hope to ink a definitive agreement. As part of the capital raise, Enlitic’s CEO has committed to buying 1.25 million company shares. In an announcement, Enlitic outlined how it plans to use the funds, with research and development ($1.7M) and sales and marketing ($1.5M) being two of the biggest line items.
“We are also deeply grateful for the continued support of our investors, reflected in the equity raise announced today,” Sistenich said. “Subject to securityholder approval, this funding will allow us to further enhance our integrated product offerings and capture the significant growth opportunities ahead.”
Enlitic and GEHC previously announced their collaboration at the Healthcare Information and Management Systems Society (HIMSS) annual meeting in March. GE HealthCare is working to roll out its new Genesis portfolio, a cloud-based enterprise imaging solution that includes edge, storage, a vendor neutral archive, and data migration. Enlitic’s AI-enabled technology will help to drive the latter, “facilitating large-scale transfers of standardized, high-quality imaging data essential for next-generation healthcare solutions.”
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.