Oct 26, 2015 | By Alec
Over the past few years, medical 3D printing applications have been steadily increasing in number and can now be found in many academic hospitals throughout the world. That number will doubtlessly only grow in the near future, in part thanks to a just-announced deal by to leading players in the field. As part of a $60 million deal, worldwide specialist in medical 3D printing applications 3D Medical will merge with top medical imaging processing developer Mach7. If the deal is successful, the company – which will continue under new name Mach7 Technologies – will be headquartered in Melbourne, Australia.
And these two companies are definitely big players. For those of you who’ve never heard of them, 3D Medical Limited is an Australian developer of medical applications of 3D printing technology that has since spread out throughout many companies. In essence, they offer a full range of services. ‘Our aim is to aid medical professionals in the facilitation of improved clinical care, improving medical procedures, diagnostics and ultimately improving patient outcomes,’ they say in their business statement. Among their services, they provide 3D printing tools, 3D prints of organs and more, holographic projections and data integration to hospitals. Mach7, meanwhile, is a US-based global provider of image management systems with an eye on the medical sector. Earlier this month, they were named the Medical Imaging Informatics Company of the Year in the Asia Pacific region by Frost & Sullivan. The two companies previously enjoyed a good professional relationship, with 3DM being the exclusive reseller of Mach7 products in Australia and New Zealand.
After the merger, the two companies will continue as Mach7 Technologies, with a headquarters in Melbourne - though the majority of the Mach7 team will continue to operate from the US. According to 3D Medical’s chairman Nigel Finch, their businesses seamlessly meet in the field of image data processing. ‘We can't do anything without an image and Mach7 gives us that image,’ he says. ‘It also has between 30 and 40 enviable clients based in 300 sites in 10 countries across the world. We can now work through that client list and sell our services over the top of Mach7.’
As he further added, this transaction should deliver a substantial material revenue boost to the company. ‘ This transaction delivers a material revenue boost to 3DM and importantly allows 3DM shareholders to benefit from the ownership of best-in-breed healthcare imaging intellectual property. The transaction will drive earnings and transform 3DM into a global operation, allowing significant opportunities to scale 3DM's value- adding data activities to leading healthcare institutions globally.’ He says. As part of the deal, 3D Medical will take over 100 percent of Mach7 shares, with the owners of Mach7 being provided with 460 million 3D Medical shares. A further $10 million must also be raised to fund, among others, Mach7’s presence in Australia.
Liong (left) and Finch.
Albert Liong, the chief executive of Mach7, confirmed that the combination was a perfect one. ‘We provide the backbone for the data and 3D Medical then does the printing … We see a combined purpose to meet what the market needs,’ he says. ‘Mach7 also gets access to the capital it needs to grow … Right now we have great traction in the US, with more than half our revenue and sales there. Outside of that there are great opportunities in Australia, south-east Asia and the Middle East.’ Liong will become the company’s managing director, with Finch becoming the non executive director.
In their press release, Liong further stated that Mach7’s products can only be improved through this merger. ‘Mach7 has enjoyed substantial growth in recent times and we feel this will be enhanced as part of 3DM. Australian investors appreciate world leading healthcare technology and we look forward to this new phase as we continue to build our impressive global customer base,’ he says. If that $10 million is successfully raised and the shareholders of 3DM approve of the merger, it is expected to be completed by January 2016.
Posted in 3D Printer Company
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