iCAD, a provider of computer-aided detection (CAD) solutions, has signed a definitive agreement to purchase the principal assets of CAD Sciences, a privately held medical technology company based in White Plains, N.Y.
Under the terms of the agreement, the Nashua, N.H.-based iCAD said will pay $2 million in cash and $3 million in shares of its 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, according to the company.
The business transaction is projected to add approximately $500,000 to the company’s quarterly operating expenses through the balance of 2008, and is expected to close early in the third quarter of 2008, subject to certain pre-closing conditions, iCAD said.
CAD Sciences develops and distributes pharmacokinetic-based CAD products that aid in the interpretation of contrast enhanced MRI images of the breast and prostate. Products are also under development by CAD Sciences for therapy monitoring, for the identification of vascular diseases using contrast enhanced MR Angiography (MRA), and for cancer detection using contrast enhanced CT, the company said.