Merge Healthcare Purchases Confirma

Merge Healthcare, a company that creates software solutions that makes diagnostic workflow and healthcare data easier to handle, announced that they have purchased Confirma. Confirma is responsible for CADstream, a system that has revolutionized MRI reporting and analysis.

According to reports, the all-stock transaction is worth more than $20 million. Confirma, which is privately held, is said to be used in more than 1,000 medical facilities.

Justin Dearborn, the CEO of Merge Healthcare, thinks this move could lead to lower costs in the future.

Said Dearborn: “CAD technology is still at an early adoption phase in the market for most indications, but it has significant opportunity as a tool for reducing imaging costs in today’s healthcare reform environment. Together with Confirma, we believe we can now better realize the long term global potential for this technology.”

The deal will reportedly be closed at some point over the next seven weeks. When all is said and done, approximately 8.5% of Merge will be owned by Confirma investors.

MRI Machine (Image: Flickr)