Pfizer’s wholly-owned subsidiary Pfizer Australia has signed a binding scheme implementation deed to acquire ResApp Health.

Brisbane-based digital health company ResApp develops mobile apps for diagnosing and managing respiratory disorders.

The company’s machine learning algorithms use sound to detect the severity of respiratory conditions, eliminating the need for additional hardware.

Under the terms of the proposed acquisition, Pfizer will acquire ResApp for A$0.115 per share in cash, representing a total equity value of approximately $74.3m (A$100m).

The scheme is subject to certain regulatory approvals, including from the Australian Competition and Consumer Commission (ACCC).

ResApp CEO and managing director Tony Keating said: “We are excited by the prospect of this acquisition by Pfizer, a leading biopharmaceutical company that shares our vision and belief that technology can help transform healthcare and improve patients’ lives.

“The proposed acquisition recognises the years of dedicated work by the ResApp team to build ResApp into a leader in the audio-based analysis of respiratory health.

“We believe that the material premium and certainty of an all-cash consideration is an attractive outcome for our shareholders.”

Pfizer chief digital and technology officer Lidia Fonseca said: “This proposed acquisition and analysis collaboration add to our rising digital capabilities and bolster our efforts to pave a brand new period for digital wellbeing.”

Along with the scheme, ResApp has also signed a research and development licence agreement (R&D Licence) for the development of Covid-19 products.

DLA Piper is serving as the legal advisor to ResApp in connection with the proposed transaction, while Azure Capital is its financial advisor.

Last month, ResApp Health announced the positive results of a trial conducted for its new cough audio-based Covid-19 screening test using a smartphone.