Under the terms of the agreement, iCAD will pay $2 million in cash and $3 million in shares of iCAD common stock. The number of shares issued will be calculated using the average closing price for the 10 consecutive trading days immediately preceding the closing.
This synergistic business transaction is projected by iCAD to add approximately $500,000 to its quarterly operating expenses through the balance of 2008, and the transaction is expected to close early in the third quarter of 2008, subject to certain pre-closing conditions.
Ken Ferry, president and CEO of iCAD, said: “This transaction fits perfectly with our strategic growth plan to expand iCAD’s leadership position beyond mammography computer-aided detection. Magnetic resonance imaging and computed tomography are demonstrating significant advances in the imaging sector.”