Mach7 Technologies, a global provider of enterprise medical image management solutions, and 3D Medical announced they have signed a definitive agreement to merge together.
The merger will provide access via public capital markets for Mach7 while preserving corporate self-determination with regard to mission and product roadmap. Upon approval and completion of the agreement, the merged entity will be publicly listed on the Australian stock exchange (ASX) and will trade as "Mach7 Technologies Ltd".
Mach7 and 3DM enjoy a strong working relationship in 3DM’s capacity as the exclusive reseller of the Mach7 image management solutions for hospitals and radiology clinics in Australia and New Zealand.
Mach7 Technologies is a global provider of enterprise image management systems, enabling healthcare enterprises to easily identify, connect, and share diagnostic image and patient care intelligence where and when needed.
The solutions improve patient care, compliance, and clinician satisfaction. Frost & Sullivan recently named Mach7 Technologies Medical Imaging Informatics Company of the Year in the Asia Pacific region.
Mach7’s global customer base includes leading healthcare organizations such as Penn Medicine, Raffles Hospital, and Massachusetts General and has operations in 10 countries. Mach7 has 43 employees, the majority located in Burlington, Vermont and generates strong contractual cash flow from software licenses and support agreements.
Both 3DM and Mach7 intend to maintain their respective workforce in engineering, customer sales, support, marketing, and service relationships without alteration.
"Our commitment to customer-driven design is the core of our culture," commented Albert Liong, chief executive officer, Mach7.
"We will remain a nimble company focused on providing the most innovative enterprise imaging platform in the world. Access to new capital will enable us to surpass business and product roadmap goals in a shorter time frame and to better serve our customers."
Mach7 has enjoyed substantial growth in recent years, and we feel this will be enhanced with "We are delighted to have secured an agreement to bring our companies together," noted Dr. Nigel Finch, chairman of 3DM.
Under the terms of the agreement, 3DM will issue of 459.5m shares to the owners of Mach7 in return for 100% of the Mach7 assets and intellectual property. A suite of performance-related shares will also be made available to the owners of Mach7 subject to achievement of agreed financial milestones.
In addition, 3DM intends to raise new funding of up to AUD$10 million to provide working capital to support further research and development, customer support, sales, and marketing activities for Mach7, build out 3DM’s value-added data offerings, retire the debt in Mach7 (~USD$2 million), and pay for the cost of the offer.
Subject to approval by 3DM shareholders, and upon completion of the merger, 3DM will propose to change the name of the company to "Mach7 Technologies Ltd" and appoint Albert Liong as managing director of the group. Currently, Mr. Liong is the chief executive officer of Mach 7 Technologies.