Philips Healthcare Imaging acquires an Israeli company DiA imaging analysis (formerly DiA Cardio). The company has developed a technology supported by artificial intelligence software to improve the analysis of cardiac ultrasound imaging, especially ultrasound performed by mobile devices.
Capital Point (TASE: CPTP), DiA’s largest shareholder, told the Tel Aviv Stock Exchange (TASE) that the company had been sold to a major strategic company, although the company was not named, sources told “Globes” that it was Philips.
DiA has nine approvals from the FDA, most recently received in February 2023, for programs that direct examinations in the field, by non-experts, including helping with where to place the ultrasound transducer for best testing — and that approval might have been A big part of Philips’ decision to go through with the deal.
DiA’s annual income is several million dollars. Philips is paying just under $100 million for DiA, with most of the amount being paid out immediately and the remainder according to various milestones.
DiA was founded in Ofakim’s technology incubator in 2009 by CEO Dr.
The company has raised $25 million to date with Capital Point, incubator Ofakim, the largest shareholder. Capital Point said it would record $7 million in revenue ($5.6 million immediately and the rest to be held by the trustee for 18 months), and another $1.5 million if the company hits its milestones.
Capital Point owns a 15% stake in DiA. The Israel Innovation Authority will receive royalty payments of $18 million, three times its investment. Other investors reporting profits include Alchimia Ventures, ICON, Mindset Ventures, Defta Partners, Connecticut Innovations, Downing Ventures, XTX Ventures, CE Venturesd, and Dr. Shmuel Kapelli.
Goldman-Aslan said: “Phillips joined as an investor in our latest financing round and we have been in close contact with them for two years. They approached us several months ago with an acquisition offer. The company was not looking to acquire, we had funding but we know this is a good match.”
She added, “We are a company with 40 employees that was founded in the south and today we have offices in Ramat Gan and Beersheba. We were a little ahead of our time, because when we entered the market we met a generation of doctors who were still used to doing everything on their own, which was frustrating.” The past, everything has changed. Today’s leading doctors are our time, grew up with technology and automation, and only ask if more can be had.” Our breakthrough became possible when the field of mobile ultrasound began to develop, especially around heart disease, and when Covid has pushed forward the field of mobile and remote testing even further. We were already ready with an approved product for marketing. We have signed marketing agreements with about 10 different international companies that combine our products and theirs.”
Published by Globes, Israel business news – en.globes.co.il – on May 7, 2023.
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