Volpara board backs $296m takeover bid

The news: Volpara Health Technologies' board is backing a $295.7 million takeover bid from AI-focused Korean group Lunit.

The numbers: Lunit has made an offer of $1.15 per share, with an implied equity value of $295.7 million and an implied enterprise value of $285.5 million. Volpara said the valuation represents a 47.4% premium to the company's last closing share price of $0.78 per share, a 55.4% premium to its one month volume weighted average price of $0.74 per share, and a 59.7% premium to its three-month volume weighted average price of $0.72 per share.

The context: Volpara, which provides AI-powered software for screening and early detection of breast cancer, said that shareholder approval will be sought at a meeting in the second quarter of next year. Cornerstone shareholders Harbour Asset Management, non-executive director Roger Allen and Volpara founder Ralph Highnam, who currently hold or control in aggregate 25.92% of Volpara's issued capital, are backing the offer from the Korean medical company.

What they said: Volpara chairman Paul Reid said: "The transaction is expected to accelerate Volpara’s ability to serve its purpose of saving families from cancer. With the support of Lunit's in-house radiologists and complementary technologies, Volpara’s repository of more than 100 million images will be strategically augmented by additional AI expertise and solutions."