Merge Healthcare (NASDAQ: MRGE) has acquired Ophthalmic Imaging Systems (Bulletin Board:OISI) (OIS), which provides digital imaging and informatics solutions for ophthalmology and other medical specialties. The two companies announced today that they had signed the deal.
This is a first exit for Mori Arkin and Dr. Uri Geiger's Accelmed fund for investing in medical device companies, which invested $6 million for 44% of the company. Accelmed, which invested the money in two stages in 2009 and 2010, will make a 120% return on its investment in less than two years. Yokneam based MediVision Medical Imaging Ltd. (EuroNM:MEDV) holds 28% of OIS.
OIS's Israel R&D center which employs 20 people will continue to operate.
Under the terms of the definitive merger agreement, OIS shareholders will receive a 0.1693 share of Merge Healthcare common stock for each share of OIS common stock. The exchange ratio was calculated to equal $1.00 per OIS share using the five-day volume-weighted average price of Merge Healthcare common stock as of close of trading last Friday.
Based on outstanding shares of OIS common stock, the aggregate value of the Merge Healthcare common stock to be issued as consideration will be about $30.3 million, before costs related to outstanding OIS debt, options and warrants. The companies expect the transaction to qualify as a tax-free reorganization for Federal income tax purposes with respect to Merge Healthcare common stock received by OIS shareholders.
Merge Healthcare is a leader in virtually every image-intensive healthcare specialty, and has a market cap of $480 million.
OIS CEO Gil Allon said, “Merge Healthcare has extensive technical expertise and industry knowledge, and a solid infrastructure to support the continued growth of our ophthalmic imaging and informatics businesses. We believe that joining forces with this leader is in the best interest of our company, our shareholders and our customers, and the all-stock nature of this transaction allows OIS shareholders to benefit from Merge Healthcare’s future market success.”
Published by Globes, Israel business news - www.globes-online.com - on June 6, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011