Nanox Acquires Medical Imaging Company Zebra Medical Vision for $200 Million

The digital X-ray company Nanox agreed to acquire Zebra Medical Vision, which develops an AI-powered medical imaging platform that spots breast cancer, brain bleeds, and more in standard X-ray images.

Nanox said it agreed to acquire AI developer Zebra Medical Vision in an all-stock transaction valued at up to $200 million – $100 million upfront and another $100 million tied to specific milestones, all in stock.

Founded in 2014, Zebra Medical Vision has 7 FDA-approved and 10 CE-marked AI solutions for medical imaging, with a recently introduced 3D modeling solution for x-ray images used for orthopedic surgery pre-operative planning. Zebra-Med’s algorithms highlight early, previously undetected signs of common chronic diseases using patient imaging data already available to the healthcare system. According to the company, the newly discovered findings can then initiate a further medical assessment to establish individual preventative care pathways for patients.

Upon completing the acquisition, Zebra-Med will be a wholly-owned subsidiary under the Nanox brand.

Nanox said the acquisition of Zebra Medical Vision would help achieve both companies’ shared goal of forming the next generation of AI-enabled hardware and software devices to set a new standard in the medical devices sector. “Zebra Medical Vision has always operated to expand the use of AI in medical imaging to improve health outcomes for patients worldwide,” said Zohar Elhanani, CEO of Zebra Medical Vision.

Nanox also announced that it has entered into a binding letter of intent to acquire USARAD and its related company, Medical Diagnostics Web, or MDW. USARAD operates a network of 300 radiologists. Total consideration for USARAD and MDW is $30 million, comprising $21 million of Nanox shares and $9 million in cash. Nanox says that these two agreements intended to create a globally connected, end-to-end radiology solution.

“Expanding access to medical imaging via the widespread deployment of the Nanox.ARC solves one of the obstacles to achieving true population health management,” said Ran Poliakine, Chairman and Chief Executive Officer of Nanox.

Ran Poliakine added: “The Nanox.ARC, together with Zebra-Med, would move us toward our vision of deploying our systems. Our plan is to double down on Zebra-Med’s AI and cloud platform effort, strengthen the industry-leading team even further, and solidify Zebra-Med’s leadership position in the radiology space. This strategic move represents an end-to-end, globally-connected medical imaging solution.”

One hundred thirty-six digital health companies were acquired in the first half of 2021 compared to 83 in 1H 2020.