Seoul, South Korea, imaging AI vendor Lunit is set to acquire a competitor for $193 million (USD), the two announced Thursday.

Based in Wellington, New Zealand, Volpara Health Technologies offers software for the early detection of cancer. The “strategic move” comes after Lunit conducted an “exhaustive” evaluation of possible ways to grow further.

“Lunit's acquisition of Volpara signifies a pivotal moment in our commitment to advancing global cancer diagnostics,” CEO Brandon Suh said in a Dec. 14 announcement. “Volpara's AI-powered mammography solutions, operational in over 2,000 U.S. medical sites, would catapult Lunit into the forefront of the American market.”

Founded in 2013, Lunit’s flagship Insight suite is cleared by regulatory authorities in the U.S. and Europe and used by over 3,000 hospitals and other institutions in 40 countries. In pursuing the deal, Suh also highlighted Volpara’s “robust” repository of over 100 million medical images, which could “supercharge” its capabilities and pave the way for “groundbreaking” new solutions.

The deal, expected to close by Q2 of 2024, is still contingent upon approval from Volpara shareholders and the New Zealand High Court, among other conditions. It also leaves open the option for Volpara to seek competing offers. The price of $0.77 (USD) per share represents a 47.4% premium to the company’s closing stock value on Dec. 13. Founded in 2009, Volpara holds 100-plus patents along with numerous regulatory clearances in the U.S., Europe and elsewhere.

“Lunit's interest in acquiring Volpara is a strong testament to the high quality of our products, our significant U.S. market presence, and the hard work of our employees,” Volpara CEO and Managing Director of Teri Thomas said in an announcement. “Working together, Lunit and Volpara would have the opportunity to develop products that very few companies are in a position to do. This is expected to put us at the forefront of cancer technology and position us as a global leader in our field."