RadNet will acquire DeepHealth for 2.5 million shares in common stock, according to Seeking Alpha.
DeepHealth has developed machine learning technologies to assist radiologists in interpreting mammography exams.
With the deal, RDNT acquires an existing business partner as management believes machine learning and AI will be increasingly important in healthcare operations and quality delivery in the coming years.
According to a 2019 market research report by Absolute Market Insights, the market for artificial intelligence radiology was only $188 million in 2018 and is expected to exceed $3.5 billion by 2027. This represents a forecast CAGR (Compound Annual Growth Rate) of 16.5% from 2019 to 2027.
The main drivers for this expected growth are innovation in algorithm performance and continued demand for improving results in diagnosing anomalies in presented data. The North America region is forecast to show the highest growth during the period due to improving facilities for CT, MRI and PET imaging.
Read more at Seeking Alpha.