VHT.AX - Completed its acquisition of MRS Systems, Inc.

14th June 2019: completed its acquisition of Seattle-based MRS Systems, Inc. (MRS Systems)

The company said the Lynnwood, Washington-based Mammography Reporting System Inc was “a medical software company that provides comprehensive patient tracking and communication, and a radiology reporting platform, for sub-specialty radiology applications including breast and lung imaging”.

Volpara said that MRS was “a leading provider of breast clinic management software” with an estimated 20 percent market share of breast clinics in the US and its software was used in more than 1,700 breast clinics.

The company said that MRS was is forecasting annual recurring revenue of about $US4.5 million for the year to December 31, 2019, and with capital sales, expected total revenue of $US7.5 million for 2019.

The acquisition of MRS Systems instantly increases the number of US breast clinics to which Volpara has access from ~400 to over 2,000 (an increase of more than 400%).

Volpara said the acquisition provided “an expanded and mature presence in the US, with an enlarged sales footprint and technical support, product suites that were “highly complementary” creating cross-selling opportunities for both MRS and Volpara.

The company said the combination of MRS clinical data and Volpara images would enrich its artificial intelligence capability.

Volpara chief executive officer Dr Ralph Highnam said his company had been “talking to MRS for many years and have been extremely impressed with the quality of the people and the products they build”. “So, I’m very happy to now announce that we are combining to create a world-class entity with a strong US base and an extended range of integrated products which will help detect breast cancer earlier,” Dr Highnam said.

In the shorter term, it is expected that the acquisition will provide Volpara with the following:

• a much stronger US presence; technical expertise; and a mature, experienced US headquarters based in Seattle

• a significant increase in annual recurring revenue (ARR)

• accelerated sales through cross-selling opportunities

• increased potential average revenue per user (ARPU) through new products for the sales team

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