A Medical Device Daily
iCAD (Nashua, New Hampshire) a provider of advanced image analysis and workflow solutions for the early identification of cancer, reported the signing of a definitive agreement to acquire Xoft (Sunnyvale, California), a developer of the Axxent eBx electronic brachytherapy system for nearly 8.47 million shares of iCAD common stock (representing about 15.6% of iCAD's outstanding common shares after closing) and about $1 million in cash, for a total consideration at closing valued at about $13.1 million, exclusive of any potential earn-out payments.
The acquisition is expected to close by year-end, and brings a breakthrough isotope-free cancer treatment platform technology to iCAD.
The portable Axxent system, which delivers electronically-controlled radiation therapy directly to cancer sites with minimal radiation exposure to surrounding healthy tissue, is FDA-cleared for the treatment of early stage breast cancer, endometrial cancer and skin cancer, and for the treatment of other cancers or conditions where radiation therapy is indicated.
Xoft's Axxent technology is approved for accelerated partial breast irradiation (APBI), which can be delivered twice daily for five days or it can be administered immediately following the lumpectomy procedure in only a few minutes with one course of therapy, also known as Intraoperative Radiation Therapy (IORT). The alternative is a traditional course of external beam radiation which is administered five days per week over a six to seven week timeframe. Traditional external beam therapy also requires a substantial investment in a shielded “bunker“ due to the radioactive components involved in the treatment.
“The acquisition of Xoft will transform iCAD from a company focused on image analysis for the early detection of cancers to a broader player in the oncology market. We believe that early detection in combination with earlier targeted intervention will provide patients and care providers with the best tools available to achieve better clinical outcomes,“ said Ken Ferry, president/CEO of iCAD. “Xoft's technology allows radiation therapy to be delivered immediately after a lumpectomy in the surgical suite, and is being received with great enthusiasm by radiation oncologists, breast surgeons and patients alike. This breakthrough technology will expand iCAD's reach to a new and largely untapped market. We are eager to welcome Xoft's employees, customers and patients to iCAD as we pursue a business strategy that addresses the full cycle of cancer care – from detection and diagnosis to treatment and therapy monitoring.“
In other dealmaking activity:
• Stanley Black & Decker (New Britain, Connecticut), a diversified industrial company, and InfoLogix (Hatboro, Pennsylvania) a provider of enterprise mobility solutions for the healthcare and commercial industries, reported that they have entered into a definitive agreement under which InfoLogix will be acquired by Stanley for $4.75 per common share in cash. The total transaction value is about $61.2 million, including the assumption of debt, of which about $22.1 million is currently outstanding and a portion of which is convertible into shares of common stock of InfoLogix.
InfoLogix will add an established provider of mobile workstations and asset tracking solutions to Stanley's existing Healthcare Solutions growth platform. As part of Stanley Healthcare Solutions, InfoLogix's business will be well-positioned to extend its reach in healthcare and commercial markets by having access to the resources, brand equity and global supply chain of a S&P 500 company.
• Prospect Medical Holdings (Los Angeles) said its stockholders approved the adoption of the merger agreement among the Company and entities affiliated with Leonard Green & Partners, a private equity fund.
The merger agreement was first announced by Prospect on Aug. 16. Nearly 67.6% of the Prospect shares entitled to vote at the special meeting were voted in favor of adoption of the merger agreement. Following the special meeting, the merger was completed. With the closing of the merger, Prospect common stock will no longer trade on the Nasdaq Global Market following today's close and will be delisted.