iCAD (NSDQ:ICAD) signed an agreement to purchase X-ray technology developer Xoft Inc.
The Nashua, N.H.-based medical imaging company expects the $13.1 million acquisition to close by the end of the year.
The deal is comprised of about 8.47 million shares of iCAD common stock, or 15.6 percent of iCAD’s outstanding common shares, and $1 million in cash.
Xoft’s product portfolio adds a cancer treatment technology to iCAD’s platform of cancer detection technologies. The Sunnyvale, Calif.-based company’s Food & Drug Administration-cleared Axxent eBx System delivers electronically-controlled radiation therapy to cancer-affected tissue without using a radioactive isotope, and therefore requires minimal special handling or shielding requirements, according to iCAD. The device is indicated for breast and other cancers that can be treated with radiation.
"Xoft’s technology allows radiation therapy to be delivered immediately after a lumpectomy in the surgical suite, and is being received with great enthusiasm by radiation oncologists, breast surgeons and patients alike," iCAD CEO Ken Ferry said in prepared remarks.
ICAD shares rose almost 10 percent after the company’s announcement of the acquisition deal yesterday to close at $1.46. The stock’s price dropped in early morning trading and is currently going for about $1.40.