Swedish magnetic resonance imaging (MRI) software developer SyntheticMR is looking to expand its offerings to include cloud-based and AI-driven platforms and has acquired Finnish software company Combinostics.
SyntheticMR will pay €4.3m ($4.5m) for the acquisition, with approximately €3.93m in upfront cash, and the rest will be placed in escrow and issued as convertibles for SyntheticMR shares.
The acquisition is expected to close in January 2025, with the financing provided through a loan issued by SyntheticMR’s main shareholder, Swedia Invest.
SyntheticMR noted that the combination of its brain tissue characterisation ability and Combinostics’ segmentation algorithms will help the former “meet the customer demand”, particularly in neurogenerative disorders.
The Swedish medtech added: “Combinstics' support for differential diagnosis is currently based on parameters from e.g. images, spinal fluid tests and demographic data to identify and classify disease patterns using AI. Here, opportunities arise to weigh in myelin data to find more combinations and patterns and thus a stronger predictive model to guide referrers and radiologists. The offering of the combined solution will be unique while addressing customer preferences.”
The use of AI in the diagnostic imaging market is set to rapidly grow and is forecasted to exceed $1.2bn by 2027, up from $336m in 2022 as per GlobalData analysis. GlobalData also expects the global revenue for AI platforms across healthcare to reach an estimated $18.8bn by 2027.
SyntheticMR also plans to leverage Coninostics’ network of clinical and industrial partners, which are expected to accelerate the former’s developmental plans. The Swedish company also plans to use its existing sales organisation to expand Combinostics' existing products in several major markets.
“We have identified significant underlying value in Combinostics, which we believe can be realised by, among other things, accelerating sales activity and through the synergies that an acquisition brings within the SyntheticMR Group,” said SyntheticMR's CEO Ulrik Harrysson.
“We believe that the expertise and commitment of the employees within Combinostics are central to Combinostics' success, and it is our strong belief that there is good potential to realise Combinostics' underlying value and growth with a common ambition. As part of SyntheticMR, there are very good growth opportunities and we see good opportunities to significantly expand our customer offering already in 2025, as well as generate a significant increase in sales already in the short term.”
SyntheticMR’s lead product is MRI software SyMRI Neuro, which generates adjustable contrast images and quantitative data from a five-minute scan. In September, version 15 of the software was cleared for use in the UK. The company has also signed a partnership agreement with Phillips to develop AI-powered quantitative brain imaging tools to diagnose disorders such as multiple sclerosis, traumatic brain injury, and dementia.
