iCAD to Merge with CADx and Qualia Computing

An agreement has been announced whereby iCAD, Inc. (Nashua, NH, USA; www.icad.med.com) will merge with privately held CADx (Beavercreek, OH, USA) and Qualia Computing, Inc. (also in Beavercreek). Currently, the companies are working on a joint and coordinated basis.

The combination of iCAD and CADx represents a merger of two growing computer-aided detection (CAD) companies with complementary strengths and minimal duplication of activities. iCAD and CADx have installed more than 300 CAD systems for the early detection of breast cancer. CADx anticipates profitable operations in the fourth quarter of 2003 and in 2004, while iCAD has projected profitable operations for 2004. To complete the merger, iCAD will issue 4.3 million shares of its common stock in exchange for all outstanding shares of Qualia Computing, Inc. and CADx System, Inc. In addition, iCAD will pay U.S.$1.55 million in cash and execute a 36-month promissory note in the amount of $4.5 million to purchase Qualia shares owned by two institutional investors. CADx will operate as an independent subsidiary of iCAD, Inc.

"The benefits of this merger for CADx and its customers include access to iCAD's new iQ technology, which allows all women's healthcare facilities, regardless of size, to offer CAD solutions to women at risk,” said Dr. Steven Rogers, president and CEO of CADx and Qualia Computing.




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ICAD
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