GE HealthCare said on Friday it agreed to acquire Caption Health, a closely held company that makes AI applications to interpret ultrasound exams.
The acquisition creates an opportunity to pair Caption’s software with GE HealthCare’s ultrasound devices, which the companies say can help detect disease earlier and deliver more precise diagnoses.
The terms of the deal weren’t disclosed, though GE HealthCare said it plans to fund the acquisition from its cash reserves.
“Guiding ultrasound users during examinations with the help of AI is of growing importance, especially as we reach a broader set of healthcare professionals,” GE HealthCare Ultrasound CEO Roland Rott said in a statement. “This tuck-in acquisition will help expand affordable access to ultrasound imaging to novice users and is aligned with a broader shift to precision care globally.”
The purchase will be the second since GE HealthCare established itself as an independent company. Last month, it agreed to acquire France-based IMACTIS, which uses computed tomography (CT) interventional guidance to aid surgeons in minimally invasive operations.
GE HealthCare CEO Pete Arduini said in an interview in January that “M&A is going to be a really important part of our capital allocation strategy.”
San Mateo, Calif.-based Caption Health has developed an echocardiogram program for early detection of heart disease. Caption’s software walks clinicians through each step of the scanning and image-capture process, and also calculates ejection fraction, or how much blood is pumped out with each heartbeat, according to its website.
The company also is developing ultrasound applications for pulmonary conditions.
To start, Caption will be integrated into GE HealthCare’s point of care and handheld business portfolio, with expanded future use cases, said Karley Yoder, GE HealthCare’s chief digital officer of ultrasound.