GE HealthCare announces agreement to acquire MIM Software

Rhea-AI Summary

GE HealthCare (GEHC) announced the acquisition of MIM Software, a global provider of medical imaging analysis and artificial intelligence (AI) solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology. The acquisition aims to strengthen GE HealthCare's digital solutions across care pathways, reinforcing its commitment to integrating medical imaging products for more precise, connected, and efficient care across disease states.

Insights

Financial Analyst

The acquisition of MIM Software by GE HealthCare represents a strategic move aimed at enhancing GE's digital solutions in precision care. This move is particularly significant as it demonstrates GE HealthCare's commitment to expanding its digital capabilities in the medical imaging space, which is a rapidly growing sector within healthcare technology.

From a financial perspective, the integration of MIM Software's AI-enabled image analysis tools into GE HealthCare's offerings could potentially lead to operational efficiencies, cost savings and improved patient outcomes. These factors are likely to be viewed positively by investors, as they may contribute to long-term revenue growth and margin expansion. The transaction's expectation to be neutral to Adjusted EBIT in the first year and accretive thereafter suggests a careful consideration of financial impact, with an anticipation of positive contribution to earnings over time.

Moreover, the funding of the transaction with cash on hand indicates a solid liquidity position for GE HealthCare, which is reassuring for stakeholders. The lack of public disclosure of the financial details, however, leaves some uncertainty regarding the valuation of MIM Software and the immediate financial implications for GE HealthCare's balance sheet.

Medical Technology Analyst

GE HealthCare's acquisition of MIM Software is poised to significantly enhance its portfolio in medical imaging and AI-driven analytics. The integration of MIM's software into GE's advanced visualization offerings is expected to streamline complex medical imaging processes, such as AI-based segmentation and contouring, as well as dosimetry analysis, which are critical in personalized patient treatment plans.

The emphasis on precision care and the development of connected devices and digital solutions aligns with current trends in healthcare, where there is a shift towards personalized medicine and the use of advanced technologies to improve diagnostic accuracy and treatment efficacy. This strategic alignment can position GE HealthCare as a leader in the field, potentially increasing its market share and creating new revenue streams.

Furthermore, the focus on Theranostics and advanced imaging techniques, such as beta amyloid imaging for Alzheimer's and myocardial perfusion imaging for CAD, indicates a forward-looking approach that anticipates future healthcare needs and technological advancements. This could lead to early market entry advantages and set new standards in care pathways for various diseases.

Healthcare Industry Analyst

The healthcare industry is witnessing a transformative phase with an increased reliance on digital innovation and AI. GE HealthCare's move to acquire MIM Software aligns with the broader industry trend of integrating digital solutions to enhance patient care. This acquisition is expected to bolster GE's position in the precision care market and expand its digital health capabilities.

By incorporating MIM Software's solutions, GE HealthCare is likely to enhance its competitive edge in the fields of radiology, molecular imaging and radiation oncology. The ability to offer comprehensive and integrated systems can be a differentiator in the healthcare market, where providers are seeking to consolidate their technology platforms and reduce the complexity of their operations.

The long-term implications for stakeholders include the potential for improved clinical outcomes due to more precise diagnostics and treatments, as well as the possibility of increased healthcare efficiency and reduced costs due to automation and advanced processing capabilities. These outcomes could be particularly impactful in the management of chronic diseases and complex conditions that require ongoing monitoring and treatment adjustments.

• The anticipated acquisition aligns to GE HealthCare’s precision care strategy with the goal of strengthening the company’s digital solutions across care pathways
• MIM Software provides AI-enabled image analysis and workflow tools across multiple care areas, including oncology, urology, neurology, and cardiology
• Today’s agreement reinforces GE HealthCare’s commitment to integrate medical imaging products in order to deliver more precise, connected and efficient care across disease states

CHICAGO--(BUSINESS WIRE)-- GE HealthCare (Nasdaq: GEHC) today announced it has entered into an agreement to acquire MIM Software, a global provider of medical imaging analysis and artificial intelligence (AI) solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology at imaging centers, hospitals, specialty clinics, and research organizations worldwide. GE HealthCare expects to leverage MIM Software’s imaging analytics and digital workflow capabilities across various care areas to accelerate innovation and differentiate its solutions for the benefit of patients and healthcare systems around the world.

Recognizing the industry transformation taking place as digital innovation reshapes the experience of patients and providers, GE HealthCare – a leading global medical technology, pharmaceutical diagnostics, and digital innovator – is focused on developing smart devices, aligned to disease states and enabled by digital. These efforts are reflected in the company’s mission to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier.

MIM Software’s portfolio of innovative imaging solutions provides a variety of beneficial features, including: the integration of diagnostic images from multiple modalities into treatment plans; automation to help reduce repetitive tasks and manual interventions; quantitation and advanced processing in diagnostic imaging and nuclear medicine to help determine therapy response; and a platform to assist with Theranostics imaging and dosimetry.

GE HealthCare expects to integrate MIM Software solutions into its advanced visualization offerings to facilitate AI-based segmentation and contouring as well as dosimetry analysis for patients across their treatment journeys and in the growing fields of radiology, molecular imaging, and radiation oncology.

“We are committed to providing comprehensive, connected devices and digital solutions that enable providers to improve patient care across multiple specialties,” says Peter Arduini, President & CEO of GE HealthCare. “We expect our efforts to bring these two complementary organizations and innovative product portfolios together to strengthen our capabilities as a leading provider of integrated imaging systems, analytics, and advanced digital workflows across several care areas and pathways – including Theranostics, radiation oncology, urology, neurology and cardiology. Now and in the future, we are working to transform patient care.”

“We are excited by the prospect of joining GE HealthCare and thrilled to share this exciting news,” adds Andrew Nelson, CEO of MIM Software. “Over the past two decades, we have worked to develop innovative vendor agnostic products and deliver quality services to earn the trust of our customers – this will not change. As a part of GE HealthCare, we anticipate developing new and increasingly integrated digital solutions to meet our customers’ most complex and pressing needs, today and into the future. Together, we will build upon our shared legacies of enhancing patient care.”

As novel therapies become more widely available, providers rely on advanced imaging, workflow and digital solutions to provide critical information and help enable faster, more effective treatment plans. With the agreement to acquire MIM Software, GE HealthCare is working towards strengthening its focus and offerings to support the broad practice of precision care across various disease states and imaging practices, including Theranostics in oncology for the treatment of advanced prostate cancer, streamlined workflow solutions in radiation oncology to help simplify complex cancer treatment plans, beta amyloid imaging in neurology for the diagnosis and monitoring of Alzheimer’s patients, and myocardial perfusion to diagnose coronary artery disease (CAD).

“Our anticipated acquisition of MIM Software will mark a key moment in the evolution of our technology. By integrating MIM Software’s cutting-edge imaging analytics and AI-driven solutions with GE HealthCare’s advanced medical technology, we are not just expanding our capabilities, but joining together to embrace the possibilities of precision care. This intended merger is a fusion of innovative visions, aimed at evolving the way we detect, treat, and manage disease,” shares Taha Kass-Hout, MD, MS, Chief Technology Officer of GE HealthCare. "GE HealthCare is committed to developing smart, AI-powered devices that cater to specific disease states, thereby enabling clinicians to deliver more personalized care. We expect the integration of MIM Software will also advance our efforts in connecting data across care pathways. It is a leap towards a future where healthcare is more precise, connected, and efficient, with the goal of benefitting providers and patients worldwide.”

Founded in 2003, MIM Software is headquartered in Cleveland, Ohio, with additional offices in China and Belgium. The consummation of the transaction is subject to customary closing conditions, including regulatory approvals. Financial details of the transaction have not been disclosed publicly. GE HealthCare intends to fund this transaction with cash on hand. The Company expects this transaction to be neutral to Adjusted EBITⁱ in year one and accretive thereafter.

Forward-Looking Statements

This release contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “target,” “guidance,” “outlook,” and similar expressions. These forward-looking statements may include, but are not limited to, statements about the transaction, the completion and expected results of the transaction, and GE HealthCare Technologies Inc.’s (the “Company’s”) performance, growth opportunities, and strategy. These forward-looking statements involve risks and uncertainties, many of which are beyond the control of the Company. Factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include, but are not limited to, the conditions to the completion of the transaction may not be satisfied; closing of the transaction may not occur or may be delayed; the Company may be unable to achieve the anticipated benefits of the transaction; operating costs and business disruptions (including, without limitation, difficulties in maintaining relationships with employees, customers, and suppliers) may be greater than expected; the Company may assume unexpected risks and liabilities; and completing the transaction may distract the Company’s management from other important matters. Other factors that may cause such a difference also include those discussed in the "Risk Factors" section of the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and any updates or amendments it makes in future filings. There may be other factors not presently known to the Company or which it currently considers to be immaterial that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements the Company makes. The Company does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation.

About GE HealthCare Technologies Inc.

GE HealthCare is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator, dedicated to providing integrated solutions, services, and data analytics to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier. Serving patients and providers for more than 100 years, GE HealthCare is advancing personalized, connected, and compassionate care, while simplifying the patient’s journey across the care pathway. Together our Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics businesses help improve patient care from diagnosis, to therapy, to monitoring. We are an $18.3 billion business with 50,000 employees working to create a world where healthcare has no limits.

Follow us on Facebook, LinkedIn, Twitter, Instagram, and Insights for the latest news, or visit our website https://www.gehealthcare.com/ for more information.

About MIM Software

MIM Software Inc. is headquartered in Cleveland, OH, with international offices in Beijing, Chengdu, and Brussels.

MIM Software is committed to enhancing patient care by providing customer-centered and innovative imaging solutions in Radiology, Nuclear Medicine, Radiation Oncology, Molecular Radiotherapy, Neuroimaging, and Cardiac Imaging.

MIM Software sells its products globally to imaging centers, hospitals, specialty clinics, research organizations, and pharmaceutical companies. The company’s products are used in centers worldwide.

ⁱ See our last earnings release dated October 31, 2023 for the definition of Adjusted EBIT.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108661761/en/

GE HealthCare Media Contact:

Margaret Steinhafel

M +1 608 381 8829

margaret.steinhafel@gehealthcare.com



GE HealthCare Investor Contact:

Carolynne Borders

M +1 631 662 4317

carolynne.borders@gehealthcare.com

Source: GE HealthCare

FAQ

What is the latest announcement from GE HealthCare (GEHC)?

GE HealthCare (GEHC) announced the acquisition of MIM Software, a global provider of medical imaging analysis and artificial intelligence (AI) solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology.

What is the expected impact of the acquisition on GE HealthCare's digital solutions?

The acquisition aims to strengthen GE HealthCare's digital solutions across care pathways, reinforcing its commitment to integrating medical imaging products for more precise, connected, and efficient care across disease states.

What are the areas of focus for the integration of MIM Software's solutions into GE HealthCare's offerings?

GE HealthCare expects to integrate MIM Software solutions into its advanced visualization offerings to facilitate AI-based segmentation and contouring as well as dosimetry analysis for patients across their treatment journeys and in the growing fields of radiology, molecular imaging, and radiation oncology.

What are the expected benefits of the acquisition for patients and healthcare systems?

The acquisition aims to accelerate innovation and differentiate GE HealthCare's solutions for the benefit of patients and healthcare systems around the world, providing comprehensive, connected devices and digital solutions that enable providers to improve patient care across multiple specialties.

What is the expected impact on GE HealthCare's mission and vision?

The acquisition supports GE HealthCare's mission to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier, reflecting the company's commitment to developing smart devices, aligned to disease states and enabled by digital.

What are the anticipated areas of focus for precision care across various disease states and imaging practices?

The acquisition aims to strengthen GE HealthCare's focus and offerings to support the broad practice of precision care across various disease states and imaging practices, including Theranostics in oncology, streamlined workflow solutions in radiation oncology, beta amyloid imaging in neurology, and myocardial perfusion to diagnose coronary artery disease (CAD).

What are the expected financial details of the acquisition?

Financial details of the transaction have not been disclosed publicly. GE HealthCare intends to fund this transaction with cash on hand and expects it to be neutral to Adjusted EBITi in year one and accretive thereafter.

Where is MIM Software headquartered and what are the terms of the acquisition?

MIM Software is headquartered in Cleveland, Ohio, with additional offices in China and Belgium. The consummation of the transaction is subject to customary closing conditions, including regulatory approvals.