Kiwi digital health company sold for $300m

NEWS - eHealthNews.nz editor Rebecca McBeth

Wellington-based digital health company Volpara has been sold to South Korean firm Lunit for nearly $300 million NZD, allowing the company to extend its Kiwi development team by 20 percent.

Volpara is known for its breast imaging technology, while Lunit is an AI firm specialising in cancer diagnostics.

Chief executive Teri Thomas says the company was looking for a partner that shared Volpara's mission of saving families from cancer.

Thomas, who will continue in her role at Volpara and has been appointed chief business officer of Lunit’s Cancer Screening Group, tells eHealthNews that Lunit's expertise complemented Volpara's strengths.

The acquisition will boost Lunit’s capabilities in AI-driven cancer diagnostics while Volpara's technology will benefit from Lunit's extensive AI capabilities and global infrastructure, including regulatory approvals in 50 countries.

Thomas says the merger not only opens new markets for Volpara but also enhances its product offerings through joint development efforts.

“The merger allows us to refocus our money and our efforts in continuing to drive further Kiwi innovation and global impact,” she says.

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Despite the sale, she says Volpara remains committed to its Kiwi roots. The company expects to grow its Wellington-based team by about 20 percent in the next year, increasing the number of development teams from three to five.

Thomas says when she joined Volpara as an advisor over three years ago, the company was facing dwindling stock prices and a challenging investment environment.

By focusing on the most profitable sectors of the company, they were able to turn that around to become cash flow positive within a year, significantly increasing interest from potential investors and acquirers.

She encourages other Kiwi tech companies who are facing challenges to look for strategic partnerships and global market engagement.

While local companies have the disadvantage of being relatively remote geographically, this sale shows the potential for New Zealand-grown digital health companies to achieve global success.

“It’s been a tough year for many in the SaaS community but my message is to not give up and you do not have to go it alone: strategic relationships can be really important,” Thomas says.

Brandon Suh, chief executive of Lunit, says while their initial focus remains on breast cancer, the two companies are committed to broadening their offerings to address a wider range of cancers and medical conditions.

“Together, we will enhance our technological capabilities and strengthen our mission to lead the global fight against cancer,” he says.


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