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Confirma to be renamed as Merge CAD and operated as a business unit of Merge

Merge Healthcare Incorporated (NASDAQ: MRGE), a leading health IT solutions provider, completed the acquisition of Confirma, Inc., the largest privately-held developer of computer assisted detection (CAD) software for medical imaging, following the definitive agreement for Merge to acquire Confirma in an all-stock transaction. With this deal, Merge Healthcare has enhanced its medical imaging capabilities to become a market leader in MRI computer-aided detection (CAD) applications. The combined business now has the capability to widen the global adoption of CAD technology through Merge’s international distribution network, as well as provide broader interoperability of this important tool within the health IT enterprise. The newly merged organizations also enjoy many common customers.

As part of the transaction Merge issued approximately 5.4 million shares of Merge Healthcare Common Stock. In addition, Merge will add approximately $2 million to Confirma’s existing cash balance in order to retire the outstanding debt and fund transaction-related costs. Confirma shareholders approved the merger on August 28, 2009. Confirma will be renamed as Merge CAD and operated as a business unit of Merge led by Paul Budak, a four year Confirma veteran who most recently served as the Vice President of Research, Development and Operations.

Merge Healthcare CEO, Mr.Justin Dearborn says that, “the Merge and Confirma teams both understand medical imaging technology at a very granular level and have a shared vision in ensuring that clinicians use it for faster and more efficient decision making. All stakeholders are anticipating that positive results will flow quickly from this newly combined business.” he added.

Source: Merge Healthcare