
Elekta to Acquire Xoft, a Subsidiary of iCAD, Inc.; Allows iCAD to Focus on Core Imaging Software Business
Elekta is set to broaden its cancer portfolio by acquiring Xoft, a subsidiary of iCAD, Inc. The deal, valued at approximately $5.5 million, along with assumed liabilities, grants Elekta access to the Xoft® Axxent® Electronic Brachytherapy (eBx®) System. The brachytherapy system was a strategic outlier for iCAD and represented a different customer call point from its core business. The Xoft System has received FDA clearance and bears the CE mark. It has also secured licensing in an increasing array of countries, permitting its application in the treatment of cancer throughout the human body, covering conditions such as early-stage breast cancer, non-melanoma skin cancer, and gynecological cancers. The system enables the precise delivery of therapeutic radiation to cancerous tissues while minimizing exposure to surrounding healthy tissue, all within a minimally shielded environment. The system had installations in in over 120 sites across 16 countries. The system was generating approximately $6M a year in revenue so Elekta paid roughly 1x sales for the technology. However, the majority of the revenue generated was service revenue and the overall business was declining. This divestiture will allow iCAD to strategically focus on its core business in medical imaging computer aided detection technologies. We recently hosted a call with iCAD CEO Dana Brown where she talked about the impact of artificial technology on medical imaging and the future strategy of the company. iCAD said it would provide more detail on the financial impact of the divestiture on its upcoming earnings call.
Dana Brown, President & CEO of iCAD, shared, “We are confident that the Xoft technology under the leadership of John Lapré and the Elekta team will continue to positively impact the lives of cancer patients and the providers who care for them on a global scale.”