- Volpara Health Technologies (VHT) is forking out over $23 million to buy Boston-based breast cancer risk assessment company CRA Health
- The buyout gives Volpara access to CRA’s cloud-based breast cancer assessment software, which is highly complementary to Volpara’s imaging and analytics tech
- CRA is currently a profitable business with annual recurring revenue (ARR) of over US$4 million (around A$5 million)
- Volpara will pay US$18 million (around A$23.5 million) upfront for the takeover, with another US$4 million (around A$5 million) to be paid upon CRA hitting ARR and staff retention targets over the next 18 months
- Volpara said its group ARR following the CRA buyout is now expected to be US$17.5 million (roughly A$23 million)
- Shares in VHT are up over 4 per cent this morning to trade at $1.55 each
Volpara Health Technologies (VHT) is forking out over $23 million to buy Boston-based breast cancer risk assessment company CRA Health.
The purchase gives Volpara access to CRA’s cloud-based breast cancer assessment software, which is highly complementary to Volpara’s own medical breast imaging and analytics technology designed to improve clinical decision-making and the early detection of breast cancer.
Volpara will pay US$18 million (around A$23.5 million) upfront for the takeover, with another US$4 million (around A$5 million) to be paid upon CRA hitting key performance and staff retention targets over the next 18 months.
Importantly, CRA is a profitable business, with annual recurring revenue (ARR) of over US$4 million (around A$5 million) and low customer acquisition costs based on its software-as-a-service business model.
Volpara said CRA has experienced strong growth over the past year despite the severe global headwinds of the COVID-19 pandemic.
Complementary tech
Based in Wellington, New Zealand, Volpara works to help clinicians better understand patients through high-quality, low-cost breast cancer screening.
The company’s Enterprise, Density, Scorecard, and Risk software — among other tech — streamline the entire breast screening process to make it efficient and effective while informing patients of their risk of developing breast cancer, recommending further testing, and detecting cancer in its early stages.
CRA’s cloud-based software receives patient information like breast density and returns the risk of breast cancer alongside other recommendations.
The software can be integrated into major electronic health record (EHR) systems and work out whether additional imaging or genomic testing is advised — adding another layer of expertise to Volpara’s breast cancer prevention and detection suite.
Volpara Grou CEO Dr Ralph Highnam said the CRA purchase is significant for the company.
“CRA is a leading provider of risk assessment tools within major EHR systems and has integrations already built with the main genetics companies,” Dr Highnam said.
“CRA has a strong science background, just like Volpara, and provides us with world-class knowledge about risk and genetics,” he said.
Outgoing Chair of CRA Chester Black said the Volpara takeover is an opportunity to save families from cancer in the U.S. and beyond.
“With the tailwinds behind cancer risk assessment and ensuring all women get the right screening at the right time building globally, we are delighted to join Volpara, a company that is substantially larger and has one of the most scientifically validated technology platforms in the breast screening industry,” Chester said.
Volpara said its group ARR following the CRA buyout is now expected to be US$17.5 million (roughly A$23 million).
Volpara shares are trading 4.38 per cent higher this morning to $1.55 each at 11:38 am AEDT. The company has a $389 million market cap.